as revised in the 2014 legislative session...tax reduction (millions of dollars) fy14-15 fy15-16...
TRANSCRIPT
As Revised in the
2014 Legislative Session
May 2014
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Table of Contents
I. HIGHLIGHTS ............................................................................................................... 1
A. General Fund Financial Status .......................................................................... 1 B. Cash Reserve Fund .......................................................................................... 1
C. General Fund Budget Adjustments – 2014 Session .......................................... 2
D. Tax Reduction – 2014 Session ......................................................................... 2
E Water Funding Initiatives .................................................................................... 3
F. Game &Parks Improvement and Maintenance Fund ......................................... 3
G. Job Training Funding ........................................................................................ 3
H. Prison Population and Reform ......................................................................... 3
I. TEEOSA School Aid ........................................................................................... 4
J. Developmental Disability Aid.............................................................................. 4
K. State Capitol Building Projects .......................................................................... 4
II. GENERAL FUND FINANCIAL STATUS ...................................................................... 6
A. General Fund Financial Status .......................................................................... 6 B. Chronology of the General Fund Financial Status ............................................. 7
C. Cash Reserve Fund ........................................................................................ 12
D. Assumptions for the Following Biennium ......................................................... 16
III. GENERAL FUND REVENUES .................................................................................. 21
A. Revenue Forecasts ......................................................................................... 21
B. Chronology of Revenue Forecasts .................................................................. 22
C. Historical General Fund Revenues.................................................................. 23
D. General Fund Transfers-Out .......................................................................... 25
E. General Fund Transfers-In .............................................................................. 25
F. General Fund Revenue Bills – 2014 Session .................................................. 26
V. GENERAL FUND APPROPRIATIONS ...................................................................... 30
A. Overview of FY14 / FY15 Biennial Budget....................................................... 31
1. Summary .................................................................................................. 31 2. Significant Budget Items ........................................................................... 32 3. Breakdown by Major Area ......................................................................... 33 B. Historical General Fund Appropriations ........................................................... 38
C. General Fund Budget Actions – 2014 Session ................................................ 39
1. Significant Increases and Reductions – 2014 Session .............................. 39 2. General Fund Appropriations by Bill – 2014 Session ................................ 40 3. Probation Officer Reclassification (Supreme Court) ................................. 41 4. Court Employee Compensation (Supreme Court) ..................................... 41 5. LB 464 Juvenile Court Jurisdiction (Supreme Court) ................................. 42 6. LB 920 Public Guardianship Act. (Supreme Court) ................................... 42 7. TEEOSA School Aid (Dept of Education) ................................................. 43 8. Nurturing Healthy Behaviors (Education) .................................................. 45 9. Early Childhood Grant Program (Education) ............................................. 45
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10. Microsoft IT Academy Program (Education) ............................................. 4511. Water Litigation Funding (Attorney General) ............................................ 4512. Restore Base Funding (State Auditor) ..................................................... 4513. Homestead Exemption (Revenue) ........................................................... 4614. Reduced Medicaid Match Rate (DHHS) ................................................... 4615. Children’s Health Insurance-ACA MAGI Eligibility Rules (DHHS)............. 4716. Children’s Health Insurance-ACA Section 2101F Population (DHHS) ...... 4717. State Disabled - Medical (DHHS) ............................................................. 4818. Revised Program Costs, Various Programs (DHHS) ................................ 4819. Medicaid Part D Clawback Reduction (DHHS) ......................................... 4820. Reallocate ACA Contingency to Behavioral Health Aid (DHHS) ............... 4921. Developmental Disability Aid (DHHS) ...................................................... 4922. State Ward Permanency Pilot Project (DHHS) ......................................... 4923. Rural Health Incentive Funding (DHHS) ................................................... 4924. Federally Qualified Community Health Centers (DHHS) .......................... 5025. Emergency Management Services Aid (DHHS) ....................................... 5026. Community Aging Services Aid (DHHS) ................................................... 5027. LB 690 Aging Nebraskans Task Force (DHHS) ....................................... 5028. Resources Development Fund (Natural Resources ................................. 5029. Inmate Per Diem and Medical Costs (Correctional Services .................... 5130. Prison Capacity Issues (Correctional Services ......................................... 5131. LB 907 Prison Population Reforms (Correctional Services) ..................... 5232. Pediatric Cancer Research (University of Nebraska) ............................... 5433. Relocation of Leased Space (Historical Society) ...................................... 54
VI. APPROPRIATIONS – ALL FUNDS .......................................................................... 55
A. Summary ........................................................................................................ 56
B. Listing of 2014 Session Appropriation Bills – All Funds .................................. 57
B. Major Cash, Federal, Nebraska Capital Construction Fund (NCCF) Items ...... 58
1. Convention Center and Sports Arena Support Funds (Treasurer) ............. 592. Property Tax Credit Cash Fund (Revenue) ................................................ 603. Retirement Plan Settlement (Labor) ........................................................... 604. Replace the Vehicle Title Registration System (Motor Vehicles) ................ 615. Health Care Cash Fund Transfer (DHHS) .................................................. 617. Upper Payment Limit. DHHS and UNMC (DHHS) ...................................... 618. Water Sustainability Fund (Natural Resources).......................................... 619. Environmental Trust Grant Fund (Game and Parks) .................................. 62
10. Job Training Funding (Economic Development) ........................................ 6211. Game &Parks Improvement / Maintenance Fund (Construction)............... 6212. Correctional Services Infrastructure and Maintenance (Construction) ....... 6213. State Capitol Courtyard Fountains (Construction) .................................... 6314. State Capitol HVAC Systems Replacement (Construction) ....................... 63
Appendix A - Detailed Listing-Mid-Biennium Budget Adjustments (All Funds) ....... 64
Appendix B - General Fund Appropriations by Agency ............................................. 74
Appendix C - General Fund Appropriations by State Aid Program ........................... 78
Appendix E - Historical Variance, Projected vs. Actual General Fund Receipts ...... 81
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HIGHLIGHTS
General Fund Financial Status
With the 2014 Session changes, the state would finish the current biennium (FY14 & FY15) with a
projected ending balance of $248.5 million, or $2,150,102 above the statutory minimum 3%
reserve. In addition, the Cash Reserve Fund balance is projected at $693 million at the end of the
FY14/FY15 biennium.
With the 2014 budget actions, average spending growth for the FY14 and FY15 biennium
increased from 5.5% as originally enacted to 6.3%. While this is higher than the 4.4% average for
the past twenty years, it follows two low growth spending biennium, 3.3% for the FY12 / FY13
biennium and a negative 1% for the FY10 / FY11 biennium.
With revenue growth (adjusted for rate and base changes) for the two year period averaging only
4.4% this relatively low revenue growth and a relatively high spending growth for the biennium
averaging 6.3% creates a difference between on-going revenues and on-going spending of
negative $38 million in FY2014-15.
The financial condition for the following biennium (FY16 & FY17) deteriorates somewhat based on
current planning estimates. The current financial status yields a projected balance that is $170
million below the minimum reserve at the end of the next biennium. In the projected status,
average spending growth (4.4%) and revenue growth (4.6%) are relatively even. The growing
imbalance is largely due to the fact that the revenue loss from 2014 revenue legislation increases
significantly in the following biennium due to operative dates and phased-in implementation. The
FY2014-15 impact of revenue bills enacted amounts to $24.3 but increases to $46.7 million in
FY16 and $63.0 million in FY17.
A key to the financial status for the following biennium is the October 2014 meeting of the
Nebraska Economic Forecast Advisory Board (NEFAB) when the initial NEFAB forecasts for
FY15-16 and FY16-17 are made.
Cash Reserve Fund
The Legislature followed the concepts that (1) at this time a significant balance should be retained
in the Cash Reserve Fund in light of the cyclical nature of variances from forecast and the dollar
level of those variances cumulative over several years, and (2) any use of the Cash Reserve
Fund should be for one-time items to match the one-time nature of the financing source. The
projected unobligated ending balance after 2014 actions is $693.1 million
The 2014 budget actions included three transfers. The first is a $50.5 million transfer to the
General Fund. This transfer covers a funding of a series of one-time items as shown on page 13.
The second is a $14.5 million transfer to the Nebraska Capital Construction Fund (NCCF) to cover
the first three years of the State Capitol HVAC replacement project and installation of four
courtyard fountains in the State Capitol. The third is a $3.6 million transfer to the General Fund
for the replacement of a state aircraft.
Page 2
General Fund Budget Adjustments – 2014 Session
The 2014 adjustments to the originally enacted biennial budget resulted in a net increase in General Fund appropriations of $68 million over the two year period. The largest increase items are shown in the table below. A more complete listing of all General Fund items can be found in Table 15 on page 39 and a narrative description of these items starts on page 41. In addition to the increase in General Fund appropriations, the Legislature enacted $71 million of transfers from the General Fund to other Funds. Of these transfers, $36 million is anticipated to be on-going ($25 million to Property Tax Credit and $11 million to Water Sustainability Fund), and $35 million as a one-time transfer ($10 million Job Training, $15 million to Game and Parks, and $11 million to Water Sustainability Fund) Major General Fund Increases - Appropriations FY2013-14 FY2014-15 2 Yr Total
DHHS-Lower FFY2015 FMAP 0 16,919,325 16,919,325 LB 907 Supervised release, reentry probation, Vocational & Life Skills 0 14,269,362 14,269,362 Nat Resources-One-time funding, Resources Development Fund 0 10,492,793 10,492,793 Corrections-Inmate per diem and medical expenses 3,950,000 4,050,000 8,000,000 Corrections-Inmate capacity issues 880,972 5,139,157 6,020,129 LB 464 Juveniles, court jurisdiction, indictment procedures 0 5,426,692 5,426,692 DHHS-Increase funding, waiting list - developmental disability aid 0 5,000,000 5,000,000
All Other (net) (1,760,358) 3,635,536 1,875,178 __________ __________ __________
Total Change in GF Appropriations 3,070,614 64,932,865 68,003,479
Major General Fund Changes – Transfers-Out FY2013-14 FY2014-15 2 Yr Total
Transfer to Job Training Cash Fund 0 10,000,000 10,000,000 Transfer to Game & Parks - Improvement and Maintenance Fund 0 15,000,000 15,000,000 Transfer to Water Sustainability Fund 0 21,000,000 21,000,000 Transfer to Property Tax Credit Cash Fund 0 25,000,000 25,000,000 __________ __________ __________
Total Change in GF Transfers-Out 0 71,000,000 71,000,000
Tax Reductions – 2014 Session
During the 2014 legislative session there were several actions taken to reduce sales, income, and
property taxes. Because of phased-in implementation and compounding effect of the income tax
bracket indexing in LB987 the tax reduction starts at $49 million in FY14-15 and continues to
increase to $115 million within five years.
Tax Reduction (millions of dollars) FY14-15 FY15-16 FY16-17 FY17-18 FY18-19
LB 96 Sales tax exempt, repair parts, ag machinery 6.759 9.280 9.514 10.486 10.801
LB 867 Sales tax exemptions, sports arena throwback 4.137 3.140 3.274 3.503 3.748
LB 987 Index income tax brackets, SS exemption 8.347 25.586 38.131 52.667 60.009
LB 986 Change homestead exemption income limitations 4.621 5.468 5.601 5.737 5.881
LB 1087 Homestead exemption, disabled veterans 0 .406 .416 .427 .437
LB 905 Increase funds, Property Tax Credit 25.000 25.000 25.000 25.000 25.000 _______ _______ _______ _______ _______
Total 48.864 68.880 81.963 97.821 114.876
A detailed description of the revenue bills can be found starting on page 26. Descriptions of the
homestead bills can be found on page 46 while a description of the Property Tax Credit program
is on page 60.
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Water Funding Initiatives
Water related funding is one of the largest amounts included in the midbiennium budget
adjustments. A total of $31 million is included in FY2014-15 which consists of a $10.5 million
increase in General Fund appropriations for the Resources Development Fund and a $21 million
transfer of monies to the Water Sustainability Fund. Of this transfer, $10 million is considered a
one-time item and is covered by a like transfer from the Cash Reserve Fund to the General Fund.
While the mainline budget bills included creation of the fund and transfer of the monies to the
fund, the actual appropriation or authority to spend monies in the Water Sustainability fund was
contained in LB 1098A subject to guidelines established in LB 1098. (See page 61)
Game &Parks Improvement and Maintenance
The budget adjustments for the Game and Parks Commission includes a $15 million transfer from
the Cash Reserve Fund (through the General Fund) and a $2.5 million transfer from the State
Recreation Road Fund to the Commission for deferred maintenance and improvement projects at
state parks. (See page 62). The Legislature also enacted LB814 which earmarks sales and use
tax from the sale or lease of motorboats, personal watercraft, all-terrain vehicles and utility-type
vehicles (roughly $3.5 million) for the repair, maintenance, and improvement of Game and Park’s
infrastructure.
Job Training Funding
Job training funding was increased through a one-time $10,000,000 transfer from the Cash
Reserve Fund (through the General Fund) to the Job Training Cash Fund in the Department of
Economic Development in FY2014-15. This fund is used to provide employee training assistance
to businesses that maintain, expand and diversify the state’s economic base and in the process,
retain and create quality jobs for Nebraska residents. (See page 62)
Prison Population and Reform
Despite a significant increase in the number of parolees in the past two years, the Nebraska
Department of Correctional Services (DCS) has experienced a marked increase in the overall
inmate population at the various correctional facilities in the state which is creating capacity
issues. As of January 31, 2014, the inmate population was 154.90% of design capacity. Last
session funding was provided in FY2013-14 and FY2014-15 for DCS to prepare a program
statement providing for a comprehensive and updated long-range capital construction master plan
for all state correctional facilities. This study will be completed in the fall of 2014. The
midbiennium budget adjustments included a substantial amount of funds, $4.8 million in FY14 and
$9.2 million in FY15, for inmate per diem and medical costs and several items that are intended to
address the immediate short-term capacity needs.
For the longer term, LB 907 enacts several programs relating to reduce prison population at both
the front end (probation and reporting centers) and back end (release and reentry). This included
(1) funds for additional Reporting Centers and expand services at current Reporting Centers, (2)
creation of the Vocational and Life Skills Program in the Department of Correctional Services
(DCS) and requires that all inmates receive a reentry plan when they have served at least 80% of
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their sentence, and (3) creation of a 16 member working group to assist the Council of State
Governments Justice Center in developing potential legislative solutions for the problems
associated with prison overcrowding.
The Legislature also enacted LB999 which provided $200,000 to prepare a program statement for
creation of the Hastings Correctional Behavioral Health Treatment Center.
TEEOSA School Aid
The mainline budget adjustments included TEEOSA aid funding at a total of $899.9 million for
FY2014-15, $880.5 million General Fund and $19.4 million Insurance Premium Tax. This was
based on the existing TEEOSA law and reflects the state aid calculated and presented by the
Department of Education (NDE) in January 2014. This $899.9 million total aid level was $40.2
million less than the $940.2 million estimated at the end of the 2013 legislative session and
funded in the originally enacted FY2014-15 budget.
LB 725 restored $33 million of this amount by reducing the Local Effort Rate (LER) to $1.00 for
FY2014-15. This only impacted FY2014-15 as prior law already had the LER returning to $1.00
starting in FY16.
Developmental Disability Aid
The 2014 budget changes includes a substantial increase in FY2014-15 funding for
developmental disability aid. This includes $2,595,048 General Funds to provide a 2% increase
in provider rates for developmental disability providers in FY2014-15 and $5,000,000 million to
provide services to persons on the developmental disability waiting list ($4,745,000 for aid and
$255,000 for service coordination)
State Capitol Building Projects
The 2014 budget includes a $14.5 million transfer from the Cash Reserve Fund to the Nebraska
Capital Construction Fund for two State Capitol Building projects. The first is $2,500,000 for
installation of fountains to be located in each of the four Nebraska State Capitol courtyards
consistent with the original design of the building. The second is a seven-phase, 10-year project
to renovate the existing Capitol HVAC systems and complete associated infrastructure, fire
protection, life safety and architectural improvements. The first three years of the project is
funded with $11.7 million from the Nebraska Capital Construction Fund (NCCF). The remaining
years are to be financed with General Fund appropriations.
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General Fund Financial Status
Page 6
General Fund Financial Status
Actual Biennial Budget Following Biennium
May 21, 2014 FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17
1 BEGINNING BALANCE
2 Beginning Cash Balance 498,526,356 814,678,170 359,032,797 248,544,704 157,382,481
3 Cash Reserve transfers-automatic (104,789,781) (285,292,610) (82,313,000) 0 0
4 Carryover obligations from FY13 0 (259,952,427) 0 0 0
5 Lapse FY12 / FY13 / FY14 reapproriations 0 1,014,185 0 0 0
6 Allocation for potential deficits 0 0 (5,000,000) (5,000,000) (5,000,000)_________________________________________________________________
7 Unobligated Beginning Balance 393,736,575 270,447,318 271,719,797 243,544,704 152,382,481
8 REVENUES
9 Net Receipts (Feb 2013 NEFAB+Hist Avg) 4,047,001,258 4,103,000,000 4,238,000,000 4,404,000,000 4,628,000,000
10 General Fund transfers-out (current law) (114,700,000) (121,300,000) (116,800,000) (117,050,000) (117,050,000)
11 General Fund transfers-in (current law) in forecast in forecast in forecast 0 0
12 Cash Reserve transfers (current law) 78,000,000 (53,000,000) 0 0 0
13 2014 Cash Reserve transfers 0 3,600,000 50,500,000 0 0
14 2014 General Fund transfers-out 0 0 (71,550,000) (36,000,000) (36,000,000)
15 2014 General Fund transfers-in 0 0 6,800,000 0 0
16 2014 Revenue Bills 0 (2,475,000) (24,299,563) (46,687,606) (63,003,103)_________________________________________________________________
17 General Fund Net Revenues 4,010,301,258 3,929,825,000 4,082,650,437 4,204,262,394 4,411,946,897
18 APPROPRIATIONS
19 Appropriations (2013 Session) 3,589,359,663 3,838,168,907 4,040,892,665 4,040,892,665 4,040,892,665
20 Projected budget increases, following biennium -- -- -- 220,641,267 396,661,361
21 2014 Mainline - Midbiennium Changes 0 (2,078,683) 2,174,808 (15,129,864) (15,411,182)
22 2014 State Claims 0 1,467,753 0 0 0
23 2014 "A" Bills 0 3,681,544 62,758,057 44,020,549 54,011,903_________________________________________________________________
24 General Fund Appropriations 3,589,359,663 3,841,239,521 4,105,825,530 4,290,424,617 4,476,154,747
25 ENDING BALANCE
26 Dollar ending balance (per Financial Status) 814,678,170 359,032,797 248,544,704 157,382,481 88,174,631
27 Dollar ending balance (at Minimum Reserve) 228,633,379 -- 246,394,602 -- 258,196,718
28 Excess (shortfall) from Minimum Reserve 586,044,791 -- 2,150,102 -- (170,022,088)
29 Biennial Reserve (%) 11.6% 3.0% 1.0%
General Fund Appropriations
30 Annual % Change - Appropriations (w/o deficits) 4.7% 5.7% 7.0% 4.5% 4.3%
31 Two Year Average 3.3% -- 6.3% -- 4.4%
General Fund Revenues
32 Est. Revenue Growth (rate/base adjusted) 6.7% 4.3% 4.5% 4.6% 4.6%33 Two Year Average 6.1% -- 4.4% -- 4.6%
CASH RESERVE FUND FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17
Beginning Balance 428,878,372 384,121,401 675,798,552 693,111,552 693,111,552
Excess of certified forecasts (line 3 in Status) 104,789,781 285,292,610 82,313,000 0 0To/from Gen Fund per current law (78,000,000) 53,000,000 0 0 0
To Nebr Capital Construction Fund (NCCF) (80,000,000) (43,015,459) 0 0 0
2014 Session - To General Fund 0 (3,600,000) (50,500,000) 0 0
2014 Session - To NCCF 0 0 (14,500,000) 0 0____________ ____________ ____________ ____________ ____________
Projected Unobligated Ending Balance 384,121,401 675,798,552 693,111,552 693,111,552 693,111,552
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Chronology of the General Fund Financial Status
Sine Die 2013 Legislative Session
At the end of the 2013 legislative session, the originally enacted FY14/FY15 biennial budget
yielded an unobligated ending balance that was $1.0 million above the minimum 3% reserve. The
projected variance from the minimum reserve for the following biennium, FY16/FY17 biennium
was projected at a negative $3.8 million.
At the start of the 2013 legislative session a projected financial status showed a budget that was
$195 million below the required minimum reserve. From that point, a balanced budget was
achieved with a combination of higher revenue forecasts ($295 million less $175 million
mandatory to the Cash Reserve Fund), cash fund transfers ($74.4 million), lower than projected
increases in the budget including TEEOSA school aid ($95.6 million) and defined benefit
retirement plans ($77.1 million) where statute changes negated a large portion of the amounts
previously included in the pre-session estimates.
Subsequent to these savings were items that utilized additional funds, including a provider rate increase for DHHS aid programs of generally 2.25% per year ($44.4 million), new legislation ($34.7 million) of which almost half was for LB561 Juvenile justice system changes, and $21 million (net above pre-session estimate) related to implementation of the federal Affordable Care Act. 2013 Legislative Session
Impact on Variance from Min Reserve (Millions of Dollars) FY13 FY14 FY15 Total
Revised Revenue Forecasts (net) - Feb 2011 (9.5) 24.0 30.0 44.5 Revenue Forecasts (Feb 2013) - Fed Tax Changes 10.4 25.5 26.7 62.6 Revenue Forecasts (Feb 2013) - Base Forecast Changes 42.6 14.5 0.3 57.4 Revenue Forecasts (April 2013) - Onetime income tax 125.0 0.0 0.0 125.0 Revenue Forecasts (April 2013) - Base Forecast Changes (3.0) 22.0 31.0 50.0 Transfer to NCCF - "Above certified" FY13 forecast 0.0 (53.0) (122.0) (175.0) Transfer to NCCF - legislative 0.0 (57.0) 0.0 (57.0) 2013 Revenue bills enacted 0.0 (0.5) (17.9) (18.4) General Fund transfers-in (not in pre-session) 0.0 37.2 37.2 74.4 General Fund transfers-out (interest in Prop Tax Credits) 0.0 2.0 2.0 4.0 Lapse reappropriations 5.0 0.0 0.0 5.0 Change in Minimum Reserve 0.0 0.0 (5.2) (5.2) _____ _____ _____ _____ Subtotal - Revenue 180.0 (9.3) (47.9) 122.8 TEEOSA, modified LB407 vs pre-session estimate 0.0 39.1 56.5 95.6 Retirement contributions, pre-session vs $21M increase 0.0 38.1 39.0 77.1 Deficits and Claims vs pre-session 26.3 0.0 0.0 26.3 Lower estimates, Medicaid eligibility/utilization 0.0 4.8 10.1 14.9 Employee Health Insurance (agencies vs pre-session) 0.0 4.3 8.8 13.1 Homestead Exemption (vs pre-session) 0.0 5.1 4.6 9.7 ACA behavioral health savings net of contingency 0.0 0.0 5.0 5.0 Medicaid (w/o ACA, provider rate) vs pre-session 0.0 2.0 2.0 4.0 Early Childhood Aid, back to GF 0.0 1.7 1.7 3.4
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2013 Legislative Session
(Continuted) FY13 FY14 FY15 Total
Child Welfare aid 0.0 0.0 0.0 0.0 DHHS provider rate increase (basically 2.25%) 0.0 (14.6) (29.7) (44.4) Spending legislation enacted - 2013 (1.0) (13.0) (20.7) (34.7) ACA Health Care Reform (oper+aid) 0.0 (7.5) (13.5) (21.0) Special Education 0.0 (4.8) (10.1) (14.9) Developmental Disability aid 0.0 (4.8) (9.6) (14.4) Capital construction projects 0.0 (4.3) (8.8) (13.1) Early Childhood Education Endowment 0.0 (4.0) (4.0) (8.0) Decline in FY15 Medicaid match rate (includes ACA) 0.0 0.0 (7.5) (7.5) University, Colleges - 4% per year vs pre-session 0.0 (2.2) (4.4) (6.6) Restore staffing,housing units (Corrections) 0.0 (2.8) (2.8) (5.5) Fully fund DD rate methodology 0.0 2.5 (4.3) (1.8) All Other appropriations (net) 0.0 (2.7) (1.5) (4.2) _____ _____ _____ _____ Subtotal - Appropriations 25.3 36.9 10.8 73.1 Total – 2013 Legislative Session 205.4 27.6 37.1 195.9
2013 Interim
The General Fund financial status for the FY14/FY15 biennium changed relatively little during the
2013 interim going from $1.0 million above to $4.3 million below the minimum reserve.
Receipts for FY2012-13 were $52.4 million above the forecast used at the end of the 2013
Legislative Session. As noted in other places, FY13 revenues in excess of the July 2012 certified
forecast are to be transferred to the Cash Reserve Fund. The amount of the minimum reserve
increases by $8.4 million due to a technical change in the calculation of the reserve attributed to
assuming 100% expenditure of funds in FY13 at Sine Die versus less than 100% expenditure with
FY13 data but offsetting carryover of unexpended appropriations at the start of the next year.
With respect to the unexpended FY13 appropriations, all operations amounts were reappropriated
while only encumbered state aid (and selected unexpended balances) are reappropriated. The
certification of encumbrances is not completed until the end of August so at this point an
estimated $20 million of lapsed unexpended appropriations is used based on an evaluation of
individual aid programs.
Lastly, the $5.4 million of accounting adjustments include several transfers to other funds not
previously accounted for under “transfers-out”. These are transfers out that are authorized in
statute but not in specific amounts or occur on a deficit basis like the Omaha Convention Center
support and tax amnesty allocation to the Dept of Revenue.
FY2012-13 Actual Data
Impact on Variance from Min Reserve (Millions of Dollars) FY13 FY14 FY15 Total
Carryover obligations from FY11-12 0.2 0.0 0.0 0.2 FY13 vs Est General Fund Net Receipts 52.4 0.0 0.0 52.4 FY13 vs Est CRF transfers-automatic 0.0 (52.4) 0.0 (52.4) FY13 vs Est Accounting adjustment (5.4) 0.0 0.0 (5.4) Assumed lapse, FY13 unexpended appropriations 0.0 20.0 0.0 20.0 Change in Minimum Reserve 0.0 0.0 (8.4) (8.4) ______ ______ ______ ______
Total Change – FY2012-13 Actual Data 47.3 (32.4) (8.4) 6.5
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In October 2013, the FY13-14 and FY14-15 forecasts were revised by the Nebraska Economic
Forecast Advisory Board (NEFAB). At that meeting, revenue forecasts were increased by a total
of $64 million; $46.3 million in FY13-14 and $17.7 million in FY14-15. By law, revenues above
certified forecasts are to be transferred to the Cash Reserve Fund therefore the $46.3 million
increase in the FY13-14 forecast is then shown as transfers to the Cash Reserve Fund.
Oct 2013 Revenue Forecasts
Impact on Variance from Min Reserve (Millions of Dollars) FY13 FY14 FY15 Total
Revenue Forecasts (revised Oct 2013) 0.0 46.3 17.7 64.0 Transfer to NCCF - "Above certified" FY14 forecast 0.0 0.0 (46.3) (46.3) Change in Minimum Reserve 0.0 0.0 (0.5) (0.5) ______ ______ ______ ______
Total Change – Oct 2013 Forecast Revisions 0.0 46.3 (29.2) 17.2
In November 2013, the Tax Rate Review Committee met as required by law and an updated
financial status was presented. Changes included a $14.7 million increase in the amount of
lapses of unexpended reappropriations. The $5 million allocation for deficits was removed and
agency requests for midbiennium budget adjustments were substituted. These requests totaled
$48.6 million over the two year period and included $16.9 million for a lower federal Medicaid
match rate, and $11.2 million for higher inmate per diem and medical costs. Estimated amounts
needed for TEEOSA school aid remained unchanged.
Nov 2013 Tax Rate Review Committee
Impact on Variance from Min Reserve (Millions of Dollars) FY13 FY14 FY15 Total
Lapse FY12 & FY13 appropriations above July TRR est 0.0 14.7 0.0 14.7 Exclude allocation for deficits 0.0 5.0 0.0 5.0 Midbiennium Request - Lower FFY2015 Medicaid FMAP 0.0 0.0 (16.9) (16.9) Midbiennium Request - Inmate medical expenses 0.0 (4.3) (4.7) (9.0) Midbiennium Request - MAGI Eligibility Rules ACA (SCHIP) 0.0 (1.4) (2.8) (4.1) Midbiennium Request - Behavioral Health Data System 0.0 (1.5) (1.5) (3.0) Midbiennium Request - Extended Family Home (EFH) Tax Rate 0.0 (1.2) (1.2) (2.4) Midbiennium Request - State Disabled - Medical (net) 0.0 (0.7) (1.6) (2.3) Midbiennium Request - Inmate per diem expenses 0.0 (1.1) (1.2) (2.2) Midbiennium Request - ACA Sec 2101F Population (SCHIP) 0.0 (0.4) (1.7) (2.1) Midbiennium Request - Infrastructure and maintenance 0.0 0.0 (1.5) (1.5) Midbiennium Request - All Other (original request) 0.0 (2.1) (2.9) (5.0) TEEOSA School Aid revisions (Oct 2013 joint meeting) 0.0 0.0 0.0 0.0 ______ ______ ______ ______
Total Change – Nov 2013 TRR Committee 0.0 7.0 (35.9) (28.9)
2014 Legislative Session
Overall the General Fund financial status for the FY14/FY15 biennium changed relatively little
during the 2014 legislative session going from $4.3 million below to $2.2 million above the
minimum reserve. However, there was a substantial number of budget actions within this minimal
net change.
Compared to the pre-session estimate, additional funds came available through the February
2014 forecast revision (net $63 million after required transfer to the Cash Reserve Fund), $40
million lower funding needs for TEEOSA school aid under existing law, $29 million of other lower
midbiennium adjustments (mostly lower funding requirements for homestead exemption and
Medicaid) and a $50.5 million transfer-in from the Cash Reserve Fund (CRF).
Page 10
The $50.5 million of Cash Reserve Fund monies were used for five specific one-time items
reflecting the one-time revenue source. Another $32.9 million was used to mostly restore the
TEEOSA school aid to its’ original level through changes in LB725. Other significant on-going
items include a $25 million increase in transfers to the Property Tax Credit Fund, $11 million
transfer to the new Water Sustainability Fund, and $14.3 million for supervised release, reentry
probation and correctional programs provided through LB907.
In addition to the $25 million increase in the Property Tax Credit fund, revenue reduction bills
were enacted amounting to $25 million in FY15 and growing to $63 million per year by FY17.
This includes; LB96 which provided a sales tax exemption for ag machinery repair parts; and
LB987 which included an income tax reduction for military retirement, social security, and indexing
income brackets.
The change in the General Fund financial status estimated for the following biennium, FY16/FY17
biennium was much more significant going from $32.8 million to $170.1 million below above the
minimum reserve. This growing shortfall in the following biennium reflects the growing costs of
legislation enacted. Excluding the one-time TEEOSA impact under LB725 revenue and spending
legislation amounted to $54.7 million in FY14-15 but grow to $90.7 million in FY15-16 and $117.0
million in FY16-17.
2014 Legislative Session
Impact on Variance from Min Reserve (Millions of Dollars) FY13 FY14 FY15 Total
Revenue Forecasts (revised Feb 2014) 0.0 36.0 63.0 99.0 Transfer: Cash Reserve Fund to General Fund 0.0 0.0 50.5 50.5 General Fund Transfers-in (Medicaid False Claims Fund) 0.0 0.0 6.8 6.8 Transfer to NCCF - "Above certified" FY14 forecast 0.0 0.0 (36.0) (36.0) 2014 Revenue bills enacted (includes transfers) 0.0 1.1 (24.8) (23.7) Lapse FY12 / FY13 reapproriations 0.0 0.0 0.0 0.0 Change in Minimum Reserve 0.0 0.0 (0.3) (0.3) Transfer to Game & Parks - Improvement and Maintenance Fund 0.0 0.0 (15.0) (15.0) Transfer to Job Training Cash Fund 0.0 0.0 (10.0) (10.0) Transfer to Water Sustainability Fund (on-going) 0.0 0.0 (11.0) (11.0) Transfer to Water Sustainability Fund (one-time) 0.0 0.0 (10.0) (10.0) Transfer to Property Tax Credit Cash fund 0.0 0.0 (25.0) (25.0) TEEOSA School Aid - to current law 0.0 0.0 40.3 40.3 Committee Prelim vs November TRR (agency request) 0.0 13.1 16.0 29.2 Homestead Exemption - to actual reimbursement 0.0 6.5 6.0 12.5 DHHS Program base reductions 0.0 0.8 6.9 7.7 2014 A Bills enacted - All Other than LB725 0.0 (3.2) (29.8) (33.0) 2014 A Bills enacted - LB725 TEEOSA School Aid 0.0 0.0 (32.9) (32.9) Correctional Services, costs and population issues 0.0 (4.8) (9.2) (14.0) Increase funding, Resources Development Fund 0.0 0.0 (10.5) (10.5) DHHS-waiting list - developmental disability aid 0.0 0.0 (5.0) (5.0) Education-Early childhood grant program 0.0 0.0 (3.5) (3.5) DHHS-2% increase in provider rates - developmental disability aid 0.0 0.0 (2.6) (2.6) University-Pediatric cancer research 0.0 0.0 (1.8) (1.8) State Claims 0.0 (1.5) 0.0 (1.5) All Other appropriation changes 0.0 (0.8) (2.9) (3.7) ______ ______ ______ ______
Total Change – 2014 Legislative Session 0.0 47.3 (40.9) 6.5
Page 11
Chronology of the General Fund Financial Status Negative numbers are items that use available funds; increased expenditures and transfers- out or reduced
revenues and transfers-in. Positive numbers are items that increase available funds; reduced expenditures and transfers-out or increased revenues and transfers-in
Current Biennium Following Biennium
Millions of Dollars FY12 FY13 3 Yr Total FY14 FY15 5 Yr Total
Sine Die 2013 Session 1.0 (3.8)
Carryover obligations from FY11-12 0.0 0.0 0.2 0.0 0.0 0.2 FY13 Actual vs Est General Fund Net Receipts 0.0 0.0 52.4 0.0 0.0 52.4 FY13 Actual vs Est CRF transfers-automatic (52.4) 0.0 (52.4) 0.0 0.0 (52.4) FY13 Actual vs Est Accounting adjustment 0.0 0.0 (5.4) 0.0 0.0 (5.4) Assumed lapse, FY13 unexpended appropriations 20.0 0.0 20.0 0.0 0.0 20.0 Change in Minimum Reserve 0.0 (8.4) (8.4) 0.0 8.0 (0.4)
July 2013 Tax Rate Review Committee 7.4 10.7
Revenue Forecasts (revised Oct 2013) 46.3 17.7 64.0 17.1 18.1 99.2 "Above certified" FY14 forecast to CRF 0.0 (46.3) (46.3) 0.0 0.0 (46.3) Lapse FY12 & FY13 appropriations >July TRR 14.7 0.0 14.7 0.0 0.0 14.7 Exclude allocation for deficits 5.0 0.0 5.0 0.0 0.0 5.0 2013 Midbiennium Budget Requests (original) (12.7) (35.9) (48.6) (33.4) (33.4) (115.4) TEEOSA School Aid revisions (Oct 2013meeting) 0.0 0.0 0.0 0.0 0.0 0.0 Change in Minimum Reserve 0.0 (0.5) (0.5) 0.0 (.2) (.7)
Nov 2013 Tax Rate Review Committee (4.3) (32.8)
Committee Prelim vs Nov TRR (agency request) 20.4 28.9 49.4 27.5 27.5 104.4 TEEOSA School Aid to current law 0.0 40.3 40.3 42.1 42.4 124.7 Allocation for Post Hearing Adjustments (5.0) (49.0) (54.0) (13.0) (13.0) (80.0) GF Transfers-in, Medicaid False Claims Cash Fund 0.0 6.8 6.8 0.0 0.0 6.8 State Claims (est) (1.2) 0.0 (1.2) 0.0 0.0 (1.2) Change in Minimum Reserve 0.0 (0.2) (0.2) 0.0 (1.0) (1.2)
Committee Preliminary Budget 36.8 120.7
Delete Allocation for Post Hearing Adjustments 5.0 49.0 54.0 13.0 13.0 80.0 Increase funding, Resources Development Fund 0.0 (10.5) (10.5) 0.0 0.0 (10.5) Correctional Services, costs and population issues (4.8) (9.2) (14.0) (5.0) (5.0) (23.9) Developmental disability - waiting list 0.0 (5.0) (5.0) (5.0) (5.0) (15.0) Education-Early childhood grant program 0.0 (3.5) (3.5) (0.1) (0.1) (3.7) Developmental disability - 2% provider rates 0.0 (2.6) (2.6) (2.6) (2.6) (7.8) University-Pediatric cancer research 0.0 (1.8) (1.8) 0.0 0.0 (1.8) All Other appropriation items (0.8) (2.8) (3.6) (2.8) (2.8) (9.1) Transfer to Game & Parks – Improve/Maint Fund 0.0 (15.0) (15.0) 0.0 0.0 (15.0) Transfer to Job Training Cash Fund 0.0 (10.0) (10.0) 0.0 0.0 (10.0) Transfer to Water Sustainability Fund 0.0 (21.0) (21.0) (11.0) (11.0) (43.0) Transfer to Property Tax Credit Cash fund 0.0 (25.0) (25.0) (25.0) (25.0) (75.0) Transfer: Cash Reserve Fund to General Fund 0.0 50.5 50.5 0.0 0.0 50.5 Revenue Forecasts (revised Oct 2013) 36.0 63.0 99.0 37.0 0.0 136.0 "Above certified" FY14 forecast to CRF 0.0 (36.0) (36.0) 0.0 0.0 (36.0) Change in Minimum Reserve 0.0 (0.7) (0.7) 0.0 0.6 (0.1)
Committee Budget to the Floor 91.5 124.7
Select File amendments 0.0 (0.1) (0.1) 0.0 0.0 (0.1) Vetoes-Mainline bills 7.7 17.2 24.9 17.2 17.2 59.4 Veto overrides-Mainline bills (7.7) (17.2) (24.9) (17.1) (17.1) (59.2) Change in state claims (0.3) 0.0 (0.3) 0.0 0.0 (0.3) Revenue bills enacted (includes transfers) 1.1 (24.8) (23.7) (46.7) (63.0) (133.4) A Bills enacted (3.2) (62.8) (65.9) (44.0) (54.0) (164.0) Change in Minimum Reserve 0.0 0.8 0.7 0.0 2.1 2.9
Sine Die 2014 Session (April 17, 2014) 2.2 (170.1)
Page 12
Cash Reserve Fund The Cash Reserve Fund (CRF) is not included as part of the "General Fund Reserve" (which is
the ending General Fund balance for a biennium) and was created as a separate and distinct fund
to cover cash flow needs within a month or several month period. The Cash Reserve Fund also
serves as a “rainy day fund” in that revenues in excess of a “certified forecast” are transferred
from the General Fund to Cash Reserve fund at the end of a fiscal year. As the certified forecast
is basically the revenue estimate at Sine Die when the budget is finalized, these transfers
sequester revenues in excess of that which is needed to balance the budget.
The 2014 budget actions related to the Cash Reserve Fund followed the concepts that (1) at this
time a significant balance should be retained in the Cash Reserve Fund in light of the cyclical
nature of variances from forecast and the dollar level of those variances cumulative over several
years, and (2) any use of the Cash Reserve Fund should be for one-time items to match the one-
time nature of the financing source. The projected unobligated ending balance at the end of the
current FY14/FY15 biennium based on current forecasts and 2014 session actions is $693.1
million
Table 1 Cash Reserve Fund Actual Estimated Estimated Estimated Estimated FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 Beginning Balance 428,878,372 384,121,401 675,798,552 693,111,552 693,111,552 Excess of certified forecasts 104,789,781 285,292,610 82,313,000 0 0 To Gen Fund per current law (78,000,000) 53,000,000 0 0 0 To Nebr Capital Construction Fund (NCCF) (80,000,000) (43,015,459) 0 0 0 To Affordable Housing Trust fund (1,000,000) 0 0 0 0 Repayment of Water Contingency transfer 4,991,572 0 0 0 0 EPIC cash flow transfers (LB379-2011) 4,461,676 0 0 0 0
2014 –Transfer to General Fund 0 (3,600,000) (50,500,000) 0 0
2014 – Transfer to NCCF 0 0 (14,500,000) 0 0 __________ __________ __________ __________ __________ Ending Balance 384,121,401 675,798,552 693,111,552 693,111,552 693,111,552
The relatively high balance in the Cash Reserve Fund (CRF) raises the question; is this balance
too high? Should the balance be reduced and if so in what manner and by how much? To try
and address the issue of what the balance should be, we first look at what is the purpose of the
Cash Reserve Fund. The major purpose of the fund is to provide protection against forecast
errors. Monies are accumulated in the CRF when receipts exceed certified forecast levels and
are then available to offset instances when receipts are below forecasts.
The level of “protection” or in other words the level of funds to retain in the Cash Reserve fund,
can be derived by looking at historical variances derived by comparing forecasts at Sine Die of the
legislative session when the budget was enacted and actual receipts which are known anywhere
from 13 to 15 months later (see Appendix D). Over the 27 year period the average negative
variance is -4.4% clustered in groups of 3 to 4 years. For simplicity, using a 4% negative variance
clustered for four consecutive years would require a balance equal to about 16% of annual net
Page 13
receipts. Applied to the four years of the current “savings” cycle that began in FY11 yields a dollar
balance of $643 million based on projected revenue in FY13-14. Applied to the average forecast
from FY15 to FY17 the target balance would be $702 million.
Another factor to keep in mind is the need for supplemental funds during a budget down period.
One recent illustration is the latest budget shortfall which occurred during the 2008 through -2011
legislative sessions. During that time a total of $986 million of one-time funds were utilized to
balance the budget in addition to the various budget cuts that were made. The largest amount of
these one-time funds, $653.8 million, came from the federal government through several ARRA
programs (FMAP, General and Education stabilization) followed by Cash Reserve Fund transfers
($259 million) and extraordinary cash fund lapses ($73.2 million). While this was a time of
unprecedented revenue declines, it illustrates the cumulative impact of multiple year shortfalls.
2014 Session Transfers
The Legislature utilized $68.6 million from the Cash Reserve Fund in the 2014 session, all for
one-time items. The first is a $50.5 million transfer to the General Fund in LB130 to cover a
series of one-time items as shown below. The second, also in LB130, is a $14.5 million transfer
to the Nebraska Capital Construction Fund (NCCF) to cover the first three years of the State
Capitol HVAC replacement project and installation of four courtyard fountains in the State Capitol.
The third is $3.6 million transfer to the General Fund in LB1016 to replace a state airplane. This
last transfer, and subsequent General Fund appropriation, was in FY2013-14.
Related Item $ Amount Transfer
DCS- temporary housing, county jails 4,950,229 Natural Resources-Resources Development Fund 10,492,793 Water Sustainability Fund-(one-time portion) 10,000,000 Game & Parks Improvement and Maintenance Fund 15,000,000 Job Training Cash Fund 10,000,000
LB1016 Replace state airplane 3,600,000 ___________ __________
Subtotal: Transfer to General Fund 54,043,022 54,100,000
DAS-State Capitol HVAC system replacement 11,701,900 DAS-State Capitol courtyard fountains 2,500,000 ___________ __________
Subtotal: Transfer to NCCF 14,201,900 14,500,000
Total Transfers from the Cash Reserve Fund 68,244,922 68.600,000
Excess of Certified Forecasts
Shown on line 3 of the Financial Status, revenues in excess of "certified" forecasts are required by
statute to be transferred from the General Fund to the Cash Reserve Fund. These would take
place in July of the fiscal year following completion of that year. The $104,789,781 transfer in
FY13 reflects the amount the FY2011-12 actual receipts were above certified. The $285,292,610
million in FY2013-14 reflects the amount that the FY2012-13 exceeded the July certified level of
which it is estimated that $125 million of non-recurring tax on capital gains was collected during
final payments in the spring of 2013.
The $82,313,000 million in FY2014-15 reflects the amount that the current revenue forecast
($4,103,000,000) exceeds the July certified level ($4,020,687,000). The certified forecast is the
estimate at Sine Die 2013 when the FY2013-14 budget was enacted. Note that these amounts
Page 14
are included in the $693 million estimated unobligated fund balance but are not yet “cash in the
bank”.
Transfers-To & From General Fund – Prior Law
Unlike the automatic transfers that occur after the close of the fiscal year and are statutorily
required, other transfers can take place as specifically enacted by the Legislature. Transfers in
FY2012-13 under existing law include LB 379-2011 ($68,000,000) and LB131-2012
($10,000,000) to assist in balancing the budgets in those respective sessions. In the 2013
session, a $53 million transfer from the General Fund to the Cash Reserve Fund was enacted in
LB199. This transfer was the amount of the increased April 2013 revenue forecasts for FY13-14
and FY14-15 and was proposed by the Appropriations Committee after the Forecast Board
meeting.
Transfers to/from the General Fund FY2012-13 FY2013-14
To General Fund, LB 379-2011 (68,000,000) 0
To General Fund, LB131-2012 (10,000,000) 0
From General Fund, LB199-2013 0 53,000,000
Net Transfers to/From General Fund (78,000,000) 53,000,000
Transfers To & From Other Funds – Prior Law
In the 2008 session, LB1094 provided for a $9 million transfer to the Water Contingency Cash
Fund for the purpose of paying water right holders who agreed to lease and forgo water use to
assist in the management, protection and conservation of the water resources of river basins, but
remain unpaid due to litigation. Repayment by the NRD receiving said funds is required once the
litigation is resolved no later than FY2012-13. The amount used was $8.5 million and is being
repaid over two years, $3.6 million in FY12 and $4.99 million in FY13.
Also LB379-2011 allowed transfers to be made to the Ethanol Production Incentive (EPIC) Fund
for cash flow purposes. A total of $4,461,676 was borrowed in FY2011-12 with repayment shown
in FY2012-13.
In the 2012 session there were two transfers made to other funds. The first is a $1 million transfer
to the Affordable Housing Trust Fund which followed from notice of an amount to be credited from
the National Mortgage Settlement. The second is an $80 million transfer to the Nebraska Capital
Construction Fund (NCCF) for five different capital construction projects: State Colleges -
Chadron Armstrong Gym ($6,700,000), State Colleges - Peru Oak Bowl improvements
($7,500,000), University of Nebraska - UNK Allied Health ($15,000,000). University of Nebraska -
UNMC Cancer Research tower ($50,000,000) and DAS-Centennial Mall project ($800,000).
In the 2013 session, $43 million was scheduled to be transferred from the Cash Reserve Fund to
the Nebraska Capital Construction Fund in FY13-14 for construction of a new Central Nebraska
Veterans Home to replace the existing facilities.
Page 15
Table 2 Cash Reserve Fund – Historical Balances
Beginning Direct
Deposit Automatic Legislative Cash Ending Balance as % of
Fiscal Yr Balance and Interest Transfers Transfers Flow Balance revenues
FY1983-84 0 37,046,760 na 0 0 37,046,760 4.7%
FY1984-85 37,046,760 (1,472,551) na 0 0 35,574,209 4.5%
FY1985-86 35,574,209 227,855 na (13,500,000) 0 22,302,064 2.7%
FY1986-87 22,302,064 1,428,021 na 0 0 23,730,085 2.7%
FY1987-88 23,730,085 1,654,844 na (7,700,000) 0 17,684,929 1.7%
FY1988-89 17,684,929 139,000 na 32,600,000 0 50,423,929 4.4%
FY1989-90 50,423,929 113,114 na (10,500,000) 0 40,037,043 3.5%
FY1990-91 40,037,043 0 na (8,100,000) 0 31,937,043 2.3%
FY1991-92 31,937,043 0 na (5,000,000) 0 26,937,043 1.8%
FY1992-93 26,937,043 0 na (9,500,000) 0 17,437,043 1.1%
FY1993-94 17,437,043 0 3,063,462 7,250,000 0 27,750,505 1.7%
FY1994-95 27,750,505 0 (8,518,701) 1,250,000 0 20,481,804 1.2%
FY1995-96 20,481,804 0 (20,481,804) 18,189,565 0 18,189,565 1.0%
FY1996-97 18,189,565 0 19,740,786 3,032,333 0 40,962,684 2.0%
FY1997-98 40,962,684 0 91,621,018 0 0 132,583,702 6.3%
FY1998-99 132,583,702 0 111,616,422 (98,500,000) 0 145,700,124 6.9%
FY1999-00 145,700,124 0 20,959,305 (24,500,000) 0 142,159,429 5.9%
FY2000-01 142,159,429 0 77,576,670 (49,500,000) 0 170,236,099 6.9%
FY2001-02 170,236,099 0 0 (60,170,000) 0 110,066,099 4.7%
FY2002-03 110,066,099 66,476,446 0 (87,400,000) (30,000,000) 59,142,545 2.4%
FY2003-04 59,142,545 59,463,461 0 (61,577,669) 30,000,000 87,028,337 3.2%
FY2004-05 87,028,337 8,170,556 108,727,007 (26,758,180) 0 177,167,720 5.8%
FY2005-06 177,167,720 0 261,715,297 (165,266,227) 0 273,616,790 8.2%
FY2006-07 273,616,790 0 259,929,524 (17,458,523) 0 516,087,791 15.1%
FY2007-08 516,087,791 0 191,436,773 (161,978,767) 0 545,545,797 15.6%
FY2008-09 545,545,797 0 116,976,571 (84,330,505) 0 578,191,863 17.2%
FY2009-10 578,191,863 0 0 (110,990,237) 0 467,201,626 14.6%
FY2010-11 467,201,626 0 0 (154,000,000) 0 313,201,626 8.9%
FY2011-12 313,201,626 8,422,528 145,155,092 (33,439,198) (4,461,676) 428,878,372 11.6%
FY2012-13 428,878,372 0 104,789,781 (154,008,428) 4,461,676 384,121,401 9.5%
FY2013-14 est 384,121,401 0 285,292,610 6,384,541 0 675,798,552 16.5%
FY2014-15 est 679,398,552 0 82,313,000 (65,000,000) 0 693,111,552 16.4%
FY2015-16 est 696,711,552 0 0 0 0 693,111,552 15.9%
FY2016-17 est 696,711,552 0 0 0 0 693,111,552 15.2%
Page 16
Assumptions-Following Biennium Revenues
The NEFAB does not make official forecasts for the following biennium or what’s commonly
referred to as the “out years”. Although different methodologies could be utilized, the revenue
estimates used for the following biennium (FY15-16 and FY16-17) in the current financial status
are prepared by the Legislative Fiscal Office (LFO) using the “capped” historical average
methodology. This “smoothing” technique derives a revenue growth for the “out years” by
calculating the level of revenues that would yield a five year average growth (FY12 to FY17)
roughly equal to the historical average from FY81 to FY13 (5.1%). Inherent in this methodology is
the concept that within any five-year period, below average revenue growth in some years will be
offset by above average growth in others and is visually seen in the line graph of historical
adjusted revenue growth. Under this method, growth for the two years would average 4.6%.
Spending
For the “following biennium” (FY15-16 and FY16-17), the mainline budget numbers reflect the
annualized impact of the current budget actions plus an estimate of future year increases in
entitlement programs, salary and health insurance increases, and other funding requirements that
are normally not optional. While the actual funding needs in these areas will not be known until
the biennial budget process starts again next session, some level of funding for these items must
be acknowledged and shown as likely funding commitments for planning purposes. Table 3
shows the individual items and assumption used in arriving at a projected budget.
Table 3 Projected Budget Increases-Following Biennium (includes on-going impact of 2014 budget actions)
Annual % Change Projected Increases Dollar Changes from FY15 Base Year FY16 FY17 2 Yr Avg FY2015-16 FY2016-17
FY2014-15 Base Appropriation 4,040,892,665 4,040,892,665
Aid to K-12 Schools (TEEOSA GF only) 6.4% 4.4% 5.4% 58,217,975 100,718,532
Special Education 2.5% 2.5% 2.5% 5,344,199 10,822,003
Early Childhood program One-time FY15 (3,415,000) (3,415,000)
Community Colleges 3.5% 3.5% 3.5% 3,287,488 6,690,038
Community based Juvenile Services aid 4.8% 3.2% 4.0% 2,000,000 5,000,000
Homestead Exemption 4.8% 3.2% 4.0% 3,500,000 5,957,410
Resources Development Fund -- One-time FY15 (10,492,793) (10,492,793)
Aid to ESU's 2.5% 2.5% 2.5% 351,294 711,370
Medicaid 9.2% 8.2% 8.7% 71,698,971 141,062,350
Public Assistance 6.4% 5.9% 6.1% 7,010,144 13,890,482
Childrens Health Insurance (CHIP) -40.3% -24.3% -32.3% (11,111,575) (15,105,416)
Child Welfare Aid 6.4% 5.9% 6.1% 4,527,019 8,818,398
Developmental Disability aid 4.2% 3.7% 3.9% 5,700,551 10,952,480
Behavioral Health aid -4.9% -5.3% -5.1% (3,279,674) (6,657,737)
Employee Salaries 2.5% 2.5% 2.5% 25,679,265 52,000,513
Employee Health Insurance 10.0% 10.0% 10.0% 15,228,217 31,979,256
Operations increase 2.0% 2.0% 2.0% 5,730,464 11,575,538
Page 17
Annual % Change Projected Increases (Continued) FY16 FY17 2 Yr Avg FY2015-16 FY2016-17 Inmate per diem costs 2.8% 2.8% 2.8% 1,367,115 2,775,244
ACA implementation (operations) -- -- -- 2,312,500 0
Juvenile Services reform (LB985-2012, LB561-2013) 3.3% 3.0% 3.2% 703,176 1,427,447
Juveniles, court jurisdiction (LB 464-2014) -- -- -- 2,970,373 12,071,602
Corrections, temporary housing, county jails -- -- -- (4,226,625) (4,226,625)
University, one-time pediatric cancer research (LB 764) -- -- -- (1,800,000) (1,800,000)
Retirement (defined benefit plans) -- -- calculated 0 0
Construction -- -- reaffirm only 3,184,556 (4,698,444)
All Other -- -- -- 111,445 272,570 ___________ ___________
Total General Fund Increases (Biennial Basis) 4.5% 4.3% 4.5% 184,599,087 370,329,217
Projected Appropriation per Financial Status 4,290,424,617 4,476,154,747
About 38% of the projected increase is in Medicaid with an average growth of 8.7% per year.
This reflects projected growth of 4.5% per year for population, client eligibility and utilization and
3% per year for provider rates. Also included in this number are annualized impacts of the
Affordable Care Act (ACA) as it phases in to full implementation.
Another 29% of the total projected budget increase in the next biennium is TEEOSA school aid as
projected under the current statute. General Funds for TEEOSA school aid is projected to
increase by 6.4% in FY16 and 4.4% in FY17.
The large decline in the Children’s Health Insurance program is the result of an expanded federal
match rate from the Affordable Care Act, 68% to 91%.for FFY2015 to FFY2019.
The reductions shown for Early Childhood programs and the Resources Development Fund relate
to deleting one-time funding contained in the FY15 base budget.
Aid to Local Governments
State Aid to Schools (TEEOSA): The estimates for FY16 and FY17 are based on the same
methodology utilized for the November 15 estimates required under current law for the proposed
biennial budget but with Fiscal Office assumptions and should be considered Fiscal Office
estimates. They are based on the statutory changes made in LB407 as enacted in the 2013
session and LB725 enacted in the 2014 session. The estimates reflect a growth in overall school
aid of 6.4% in FY16 and 4.4% in FY17.
Special Education: Increases for FY15-16 and FY16-17 reflect a 2.5% per year increase, equal
to the basic allowable growth rate under the K-12 school spending limitation and TEEOSA
calculations. Statute provides for a 10% cap on increases in Special Education reimbursement
starting in FY14-15 as amended by LB974-2014. The previous cap was 5%.
Early Childhood Programs: 2014 session budget adjustments included an additional
$3,415,000 of general funds in FY 2014-15 as aid for the early childhood education grant
program. The aid was provided to the State Department of Education on a one-time basis to
provide grants for early childhood programs over a three year period, from FY2014-15 through
Page 18
FY2016-17. The projected budget removes this one-time funding from the base budget and
provides no other inflationary increases.
Aid to Community Colleges: A 3.5% per year annual increase is included for the following
biennium budget reflecting increased state aid to support operations budget increases. This
increase amounts to about a $3.3 million per year increase.
Community Based Juvenile Services aid: LB561 enacted in the 2013 session, expanded the
Nebraska Juvenile Service Delivery Project statewide in a three step, phase-in process beginning
July 1, 2013 with full implementation by July 1, 2014. Under the bill the previously existing County
Juvenile Services Aid Program is renamed the Community-based Juvenile Services Aid Program,
and funding was increased by $1,522,425 in FY14 and $3,522,425 in FY15 to bring the total
amount of aid funding for this program to $3,000,000 in FY14 and $5,000,000 in FY15. During
floor debate on the bill, it was further stated that it was intended that funding for this program
increase to $7.0 million in FY16 and then $10 million in FY17.
Homestead Exemption: This program is projected to increase by 4.8% in FY16 and 3.2% in
FY17. This includes a 3% per year annual increase reflecting some level of inflationary increases
plus annualizing the impact of two bills enacted in the 2014 session which made changes to
income level eligibilities.
Aid to ESU's: The amount of aid to ESU's is based on funding of a certain level of core services
and technology infrastructure. Growth in aid is set at the same rate as the basic allowable growth
rate under the K-12 school spending limitation (2.5% per year).
Aid to Individuals
Medicaid: For the following biennium, the average growth is 8.7% per year. This reflects
projected growth of 4.5% per year for population client eligibility and utilization and 3% per year
for provider rates. Also included in this number are annualized impacts of the Affordable Care Act
(ACA) as it phases in to full implementation.
Public Assistance and Child Welfare: A basic growth rate of 6.0% per year is utilized for the
various Public Assistance programs for the following biennium. This reflects projected growth of
3% per year for population client eligibility and utilization and 3% per year for provider rates.
Children’s Health Insurance (CHIP): For the following biennium, a 7.5% per year increase is
used which is the same as Medicaid. However the large decline is then the result of an expanded
federal match rate (23%) from the Affordable Care Act. For FFY2015 to FFY2019 the federal
match rate for SCHIP increases from an estimated 68% to 91%.
Developmental Disability Aid: A 4% per year increase is included. This provides the
equivalent of 2.5% per year for rate equity similar to the employee salary assumption and 1.5%
for clients transitioning from K-12 programs. As this projected budget assumes no expanded
programs, nothing is assumed for funding of the waiting list.
Behavioral Health Aid: This area includes substance abuse and mental health aid. The
increases in the following biennium reflect a 3% increase to reflect some annual increase in
provider rates. Savings related to insurance coverage for behavioral health under the Affordable
Care Act (ACA) go from $5 million in FY2014-15 to $10 million in both FY16 and FY17. Originally
a $15 million savings was factored into FY2014-15 but $10 million was shifted back from the ACA
contingency in the 2014 session.
Page 19
ACA Contingency: The FY14-15 budget included a $10,000,000 contingency appropriation if
budgeted savings in the behavioral health program did not occur as planned. The amount
allocated to the ACA Contingency program stays at $10,000,000 in FY16 and then declines to
$5,000,000 in FY17 and then zero in FY18.
Agency Operations / Construction
Employee Salary Increases: Although salary increases will be the result of bargaining, some
level of increase is factored in more for illustration than planning purposes. A 2.5% per year
increase is included which approximates inflation and the current biennium funding.
Employee Health Insurance: For planning purposes, a 10% per year increase in health
insurance is included for the following biennium. Because rates have been flat for the past
several years due to coverage and program changes and drawing down fund balances, this
higher growth is utilized to anticipate a potential hike in rates.
Operations Inflation: Included in the projected status is a general 2% increase in agency non-
personnel operating costs. Although not provided as an across the board increase, this amount
historically covers increases in utility costs at state and higher education facilities as well as food
and other inflationary cost increases at 24/7 state facilities such as veterans homes, BSDC, etc…
Inmate Per Diem Costs: While some costs at the Dept of Correctional Services such as staffing
are “fixed” within a range of inmate population, some costs change directly with each inmate.
This includes items such as food, clothing, and medical care. A 3% per year increase is included
to reflect both inflationary costs and an increase in the number of inmates.
Defined Benefit Retirement Plans: The budget incorporated the changes enacted through
LB553 (2013) and assume no change in state funding from the level established in FY14.
Juvenile Services Reform: LB561 passed in the 2013 session made many significant changes
in the juvenile justice system. The bill expands the Nebraska Juvenile Service Delivery Project
statewide in a three-phase process with the transfer of such funds to take place on July 1, 2013,
January 1, 2014, and July 1, 2014. After July 1, 2013, the Office of Juvenile Services within the
DHHS will only have responsibility for the Youth Rehabilitation Centers at Kearney and Geneva.
The shift of funding includes about $23 million that had previously been budgeted under child
welfare aid. For purposes here, a 3% per year increase is included in operations for those
amounts that had previously been included under child welfare aid.
Juvenile Court Jurisdiction: LB464 passed in the 2014 session changed court jurisdiction over
juveniles and indictment procedures and changes provisions regarding the exclusive original
jurisdiction of the Juvenile Court for juveniles age 16 and 17. The bill phases-in this jurisdiction
change (age 16 on January 1, 2015 and age 17 on January 1, 2017) and associated costs for
additional probation officers and other probation staff, treatment for juveniles, pre-adjudication
out-of-home placements, and pre-adjudicated evaluations. General Fund costs for this bill go
from $5.4 million in FY14-15 to $8.6 million in FY15-16 and $16.2 million in FY16-17.
Capital Construction: General Fund dollars included in the projected budget for the following
biennium for capital construction reflect reaffirmations only based on projects funding in the
FY14/FY15 biennial budget. These are dollar amounts needed to complete funding of previously
approved projects.
Page 20
General Fund Revenues
Page 21
General Fund Revenue Forecasts Revenue estimates for FY2013-14 and FY2014-15 are the February 2014 forecasts from the
Nebraska Economic Forecast Advisory Board (NEFAB). These forecasts yield a projected
adjusted revenue growth of 4.3% in FY13-14 and 4.5% in FY14-15, an average growth of 4.4%.
While this two year growth is below the 5% historical average, the average growth for the prior
three years (FY11, FY12 and FY13) was 7.2%. The projected numbers for FY2013-14 and
FY2014-15 also reflect implementation of LB84 (2011) which diverts the equivalent of ¼% sales
tax to highway funding (approximately $70 million per year). This did not impact the calculated
revenue growth in the “out years” as the growth calculations are all rate and base adjusted.
The NEFAB does not make official forecasts for the following biennium or what’s commonly
referred to as the “out years”. Although different methodologies could be utilized, revenue
estimates used for the following biennium (FY15-16 and FY16-17) in the current financial status
are prepared by the Legislative Fiscal Office (LFO) using a “capped” historical average
methodology. This “smoothing” technique derives a revenue growth for the “out years” by
calculating the level of revenues that would yield a five year average growth (FY12 to FY17)
roughly equal to the historical average from FY81 to FY13 (5.1%). Inherent in this methodology is
the concept that within any five-year period, below average revenue growth in some years will be
offset by above average growth in others and is visually seen in the line graph of historical
adjusted revenue growth. Under this method, growth for the two years would average 4.6%.
Table 4 - General Fund Revenue Forecasts
Revenue Estimates Actual NEFAB NEFAB LFO Prelim LFO Prelim
Used in Financial Status FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17
Actual/Forecast Sales and Use Tax 1,474,942,641 1,510,000,000 1,560,000,000 1,607,000,000 1,692,000,000
Individual Income Tax 2,101,912,041 2,115,000,000 2,216,000,000 2,343,000,000 2,476,000,000
Corporate Income Tax 275,562,990 265,000,000 263,000,000 278,000,000 296,000,000
Miscellaneous receipts 199,940,938 213,000,000 199,000,000 176,000,000 164,000,000 _____________ _____________ _____________ _____________ _____________
Subtotal – Forecast/Actual 4,052,358,610 4,103,000,000 4,238,000,000 4,404,000,000 4,628,000,000
2014 Transfers-In na 0 6,800,000 0 0
2014 Revenue Bills enacted na (2,475,000) (24,299,563) (46,687,606) (63,003,103) _____________ _____________ _____________ _____________ _____________
Total Gen Fund Revenues 4,052,358,610 4,100,525,000 4,220,500,437 4,357,312,394 4,564,996,897
Adjusted Growth Total Gen Fund Revenues 6.7% 4.3% 4.5% 4.6% 4.6%
Five Yr Average -- -- -- -- 5.1%
Other “Out Year” Forecasts As noted above, other alternative methods are available for purposes of deriving revenue
estimates for the following biennium. In addition to the historical average methodology used in
the financial status, both the Nebraska Department of Revenue (NDR) and Legislative Fiscal
Office (LFO) have calculated revenue estimates for these two “out years” using the same models
and input from Global Insight and Moody’s, the national forecasting services used as input into the
tax forecast models. While these forecasts work well for the 1 to 3 year forecasts, when extended
Page 22
further they have a tendency to flatten out and follow the 3 year trend into the 4th and 5th year. In
other words, they have difficulty picking up changes in the trend. The historical average
methodology, the method used since 1991 and used in the current financial status, utilizes a
“smoothing” technique which derives a revenue growth for the “out years” by calculating the level
of revenues that would yield a five year average growth (FY09 to FY13) roughly equal to the
historical average from FY81 to FY11 (currently 5.0%).
As shown in Table 5, the preliminary estimates for the two “out years” arrived at using the
historical average concept (as used in the Financial Status), are very similar to the Global Insight
model averages although there is significant difference between the NDR and LFO Global Insight
generated estimates. Forecasts using Moody’s are significantly higher in both cases compared to
the historical average method or Global Insight. Except for the LFO Global Insight number, the
historical average methodology is now on the relatively low side of the forecast range.
Table 5 - Comparison of "Out Year" Forecasts
Based on Feb 2014 Revenue Forecasts
Current Status
Average Global Insight
Average All
Forecasts
High Est NDR-
Moodys Low Est
LFO Global
Dollar Forecast (thousands)
FY2015-16 Prelim 4,404,000 4,406,230 4,461,410 4,582,893 4,317,584
FY2016-17 Prelim 4,628,000 4,650,373 4,720,622 4,883,359 4,523,095
Calculated Growth (adjusted)
FY2015-16 Prelim 4.6% 4.7% 5.9% 8.4% 2.8%
FY2016-17 Prelim 4.6% 5.0% 5.3% 6.0% 4.3%
Two Year Avg (Prelim) 4.6% 4.9% 5.6% 7.2% 3.6%
Five Year Avg 5.0% 5.0% 5.3% 6.0% 4.5%
$ Difference from Status
FY2015-16 0 2,230 57,410 178,893 (86,416)
FY2016-17 0 22,373 92,622 255,359 (104,905)
Cumulative Total 0 24,603 150,032 434,252 (191,321)
Chronology of Revenue Forecasts Table 6 provides a chronology of revenue forecasts for FY2012-13, FY2013-14 and FY2014-15
since the initial NEFAB forecast in October 2010 (FY12-13) and October 2012 (FY13-14 and
FY14-15).
The table shows the actual forecast and the change from the prior forecast broken down by the
cause of the change whether it is bills enacted, federal tax law changes, or revised economic
assumptions (“base”)
Page 23
Table 6 – Chronology of General Fund Revenue Forecasts
Historical General Fund Revenues The table below shows the historical General Fund receipts since FY1984-85 and the adjusted
revenue growth. For purposes here, revenue growth means the growth in revenues caused by
economic activity and inflation as arrived at by adjusting for items such as tax base and rate
changes, legislation enacted, and one-time extraordinary items. The objective is to measure
underlying patterns of revenue growth ignoring such changes.
The average growth for the past five years of actual receipts (FY2008-09 to FY2012-13) is 2.5%
per year, well below the 30-year historical average of 5.0%. This five year period was hugely
variable with two years averaging minus -4.6% and three years averaging a positive 7.2%.
FY2012-13
Board Est-October 2010 1,460,000 1,750,000 210,000 170,000 3,590,000 (371,965) 0 0 (371,965) Board Est-Feb 2011 1,485,000 1,770,000 200,000 165,000 3,620,000 68,132 (38,132) 0 30,000 Board Est-April 2011 1,480,000 1,840,000 205,000 155,000 3,680,000 60,000 0 0 60,000 Sine Die-2011 Session 1,479,967 1,840,200 205,000 193,454 3,718,621 0 0 38,621 38,621 Board Est-October 2011 1,485,000 1,870,000 230,000 195,000 3,780,000 61,379 0 0 61,379 Board Est-February 2012 1,485,000 1,870,000 230,000 195,000 3,780,000 0 0 0 0 Sine Die-2012 Session 1,479,906 1,862,137 230,000 195,023 3,767,066 0 0 (12,934) (12,934) Board Est-October 2012 1,480,000 1,915,000 240,000 190,000 3,825,000 57,934 0 0 57,934 Board Est-February 2013 1,475,000 1,955,000 260,000 188,000 3,878,000 42,566 10,434 0 53,000 Board Est-April 2013 1,475,000 2,080,000 260,000 185,000 4,000,000 (3,000) 125,000 0 122,000 Sine Die-2013 Session 1,475,000 2,080,000 260,000 185,000 4,000,000 0 0 0 0
Actual Receipts FY2012-13 1,474,943 2,101,912 275,563 199,941 4,052,359 52,359 0 0 52,359
Change: First NEFAB to Actual 14,943 351,912 65,563 29,941 462,359 339,370 97,302 25,686 462,359
FY2013-14
Board Est-October 2012 1,490,000 2,010,000 255,000 167,000 3,922,000 97,660 0 0 97,660 Board Est-February 2013 1,490,000 2,040,000 265,000 167,000 3,962,000 14,522 25,478 0 40,000 Board Est-April 2013 1,500,000 2,040,000 265,000 179,000 3,984,000 22,000 0 0 22,000 Sine Die-2013 Session 1,499,996 2,039,395 265,000 216,296 4,020,687 0 0 36,687 36,687 Board Est-October 2013 1,510,000 2,085,000 255,000 217,000 4,067,000 46,313 0 0 46,313 Board Est-February 2014 1,510,000 2,115,000 265,000 213,000 4,103,000 36,000 0 0 36,000 Sine Die-2014 Session 1,508,903 2,115,000 265,000 211,622 4,100,525 0 0 (2,475) (2,475)
Change: First NEFAB to Current 18,903 105,000 10,000 44,622 178,525 118,835 25,478 34,212 178,525
FY2014-15
Board Est-October 2012 1,550,000 2,095,000 270,000 165,000 4,080,000 140,160 0 0 140,160 Board Est-February 2013 1,547,000 2,120,000 280,000 160,000 4,107,000 289 26,711 0 27,000 Board Est-April 2013 1,560,000 2,120,000 285,000 173,000 4,138,000 31,000 0 0 31,000 Sine Die-2013 Session 1,552,513 2,109,989 285,000 209,827 4,157,329 0 0 19,329 19,329 Board Est-October 2013 1,560,000 2,152,000 263,000 200,000 4,175,000 17,671 0 0 17,671 Board Est-February 2014 1,560,000 2,216,000 263,000 199,000 4,238,000 63,000 0 0 63,000 Sine Die-2014 Session 1,545,262 2,207,703 263,000 204,485 4,220,450 0 0 (17,550) (17,550)
Change: First NEFAB to Current (4,738) 112,703 (7,000) 39,485 140,450 111,960 26,711 1,779 140,450
Page 24
Table 7 –Historical General Fund Revenues
Sales and Individual Corporate Miscellaneous Total Net Adjusted
Fiscal Year Use Tax Income Tax Income Tax Taxes and Fees Receipts Grow th
FY 1984-85 300,534,120 324,585,970 48,959,234 109,271,881 783,351,205 5.2%
FY 1985-86 310,390,975 357,181,477 54,558,727 112,104,988 834,236,167 0.9%
FY 1986-87 345,158,484 365,762,015 67,423,552 108,010,490 886,354,541 6.3%
FY 1987-88 393,148,700 437,741,927 73,781,732 111,426,183 1,016,098,542 6.5%
FY 1988-89 430,078,299 479,731,816 80,624,142 143,012,760 1,133,447,017 12.1%
FY 1989-90 444,231,183 501,134,237 71,948,124 135,396,459 1,152,710,003 5.8%
FY 1990-91 547,372,735 609,430,580 81,947,961 128,325,622 1,367,076,898 4.3%
FY 1991-92 592,441,836 658,634,300 103,617,106 135,716,137 1,490,409,379 3.9%
FY 1992-93 586,355,271 690,350,753 102,754,927 145,200,908 1,524,661,859 6.7%
FY 1993-94 648,846,708 722,360,866 113,142,771 169,401,912 1,653,752,257 3.7%
FY 1994-95 683,852,397 746,717,579 123,923,674 150,995,891 1,705,489,541 8.7%
FY 1995-96 711,008,684 846,550,249 126,801,468 152,380,385 1,836,740,786 7.0%
FY 1996-97 755,907,807 944,117,130 137,337,967 172,241,113 2,009,604,017 8.5%
FY 1997-98 803,805,374 981,643,795 142,150,133 177,852,119 2,105,451,422 8.0%
FY 1998-99 744,650,752 1,078,522,994 135,033,658 165,661,901 2,123,869,305 6.7%
FY 1999-00 900,427,469 1,180,363,301 140,021,942 183,111,959 2,403,924,670 7.4%
FY 2000-01 905,023,176 1,233,363,553 138,040,082 180,435,044 2,456,861,855 2.9%
FY 2001-02 918,889,782 1,159,810,647 107,628,074 179,180,246 2,365,508,749 -3.0%
FY 2002-03 1,028,931,065 1,129,421,651 111,597,405 186,449,714 2,456,399,835 -0.5%
FY 2003-04 1,114,374,321 1,249,890,025 167,429,431 187,033,230 2,718,727,007 8.3%
FY 2004-05 1,231,011,089 1,400,076,680 198,380,442 207,726,086 3,037,194,297 9.5%
FY 2005-06 1,263,678,691 1,545,338,061 262,295,456 280,875,316 3,352,187,524 9.9%
FY 2006-07 1,303,826,416 1,650,895,394 213,027,010 240,582,953 3,408,331,773 7.3%
FY 2007-08 1,321,867,139 1,726,145,405 232,851,654 225,298,373 3,506,162,571 7.7%
FY 2008-09 1,326,161,017 1,600,418,236 198,483,786 232,405,148 3,357,468,187 -4.4%
FY2009-10 1,289,796,877 1,514,830,114 154,332,137 245,720,545 3,204,679,673 -4.8%
FY2010-11 1,372,784,033 1,735,208,600 154,944,966 236,717,493 3,499,655,092 9.3%
FY2011-12 1,436,909,373 1,822,884,254 234,266,237 201,828,916 3,695,888,780 5.5%
FY2012-13 1,474,942,641 2,101,912,041 275,562,990 199,940,938 4,052,358,610 6.7%
FY 2013-14 NEFAB* 1,508,903,000 2,115,000,000 265,000,000 211,622,000 4,100,525,000 4.3%
FY 2014-15 NEFAB* 1,545,262,437 2,207,703,000 263,000,000 204,485,000 4,220,450,437 4.5%
FY 2015-16 LFO 1,591,033,394 2,314,912,500 275,498,500 175,868,000 4,357,312,394 4.6%
FY 2016-17 LFO 1,675,684,897 2,433,660,000 291,791,000 163,861,000 4,564,996,897 4.6%
Page 25
General Fund Transfers-Out General Fund Transfers-Out account for funds that are transferred from the General Fund to
another fund within the state treasury. Although these items have the same effect as an
appropriation they are not actually expended from the General Fund and therefore are shown
under the revenue category as transfers-out from the General Fund. They subsequently are then
expended from the receiving fund.
Table 8 General Fund Transfers-Out Actual Current Biennial Budget Following Biennium
Excludes CRF Transfers FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17
Property Tax Credit Fund (110,000,000) (113,000,000) (113,000,000) (113,000,000) (113,000,000)
Water Resources Cash Fund (4,700,000) (3,300,000) (3,300,000) (3,300,000) (3,300,000)
Cultural Preservation Endowment Fund 0 (1,000,000) (500,000) (750,000) (750,000)
Nebraska Capital Construction Fund 0 (4,000,000) 0 0 0
General Fund Transfers-Out (current law) (114.700.000) (121,300,000) (116,800,000) (117,050,000) (117,050,000)
Property Tax Credit Fund 0 0 25,000,000 25,000,000 25,000,000
Water Sustainability Fund 0 0 21,000,000 11,000,000 11,000,000
Game & Parks Improvement & Maintenance. 0 0 15,000,000 0 0
Job Training Cash Fund 0 0 10,000,000 0 0
Legal Ed Public Service/Rural Practice Loan 0 0 500,000 0 0
High Growth Business Development Fund 0 0 50,000 0 0
General Fund Transfers-Out -2014 Session (0) 0 (71,550,000) (36,000,000) (36,000,000)
General Fund Transfers-Out (114.700.000) (121,300,000) (188,350,000) (153,050,000) (153,050,000)
In the 2014 session, the Legislature enacted a total of $71.5 million transfers to six different funds.
The mainline budget bills included four transfers. A description of these transfers and cash fund
appropriations for these items can be found in the section on other fund sources. Property Tax
Credit Fund (page 60), Water Sustainability Fund (page 61), Game & Parks Improvement and
Maintenance Fund (page 62), and Job Training Fund (page 62). The fifth transfer was $500,000
to the Legal Education for Public Service and Rural Practice Loan Repayment Fund in LB907A.
The substantive bill, LB907, expanded the loan repayment program from just public service to
rural legal profession shortage areas. The last transfer, in LB1114, was $50,000 to the High
Growth Business Development Cash Fund for the purpose of conducting a study regarding
venture capital best practices.
General Fund Transfers-In Cash funds are funds which contain earmarked revenue sources and monies in those funds can
only be used for the purposes authorized by statute. In many instances (since the 2009 special
session) an authorized use of monies in a cash fund is transfers to the General Fund at the
discretion of the Legislature. For accounting purposes, these are shown as “Transfers in” and are
included as revenues. The transfers shown below were enacted in the 2013 legislative session
and are already incorporated into the “Net Receipts” figures of the NEFAB forecasts.
Page 26
In the 2014 session, the Legislature enacted one transfer in addition to those enacted in the 2013
session. The Governor had recommended the transfer of $6,800,000 from the Medicaid False
Claims Cash Fund to the State General Fund in July 2014 (FY 2014-15). The current balance in
the fund is $11.6 million. The Legislature concurred with this recommendation.
Table 9 General Fund Transfers-In
Actual Current Biennial Budget Following Biennium
FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17
Securities Act Cash Fund 19,000,000 21,000,000 21,000,000 0 0
Tobacco Products Admin Cash Fund 7,000,000 10,000,000 10,000,000 0 0
Dept of Insurance Cash Fund 6,000,000 6,000,000 6,000,000 0 0
Dept of Motor Vehicles Cash Fund 1,000,000 0 0 0 0
Dept of Motor Vehicles Ignition Interlock 0 200,000 200,000 0 0
Mutual Finance Assistance Fund 300,000 0 0 0 0
Local Civic, Cultural, Convention Fund 75,000 0 0 0 0
Transfers-In Already in forecast 33,375,000 37,200.000 37,200,000 0 0
2014 - Medicaid False Claims Cash Fund 0 0 6,800,000 0 0
Total General Fund Transfers-In 33,375,000 37,200.000 44,000,000 0 0
General Fund Revenue Bills - 2014 There were several significant revenue bills enacted in the 2014 legislative session. Because of
operative dates and phased-in implementation, the largest dollar impact of the legislation enacted
will not occur until the following biennium. The following table lists the bills enacted followed by a
narrative description of the major bills in numerical order.
Table 10 Revenue Bills – 2014 Session
FY2013-14 FY2014-15 FY2015-16 FY2016-17
LB 96 Sales tax exempt, repair parts, ag machinery 0 (6,759,000) (9,280,000) (9,514,000)
LB 191 Nebr Job Creation & Mainstreet Revitalization 0 0 (5,003,000) (8,418,000)
LB 402 Change, rural community-based (C-BED) projects 0 (1,060,000) (20,000) 0
LB 814 Sales tax on watercraft / ATV to Game & Parks 0 (3,006,563) (3,540,606) (3,540,103)
LB 851 Misc revenue changes, tax filer data contract 0 0 possible gain possible gain
LB 867 Sales tax exemptions, sports arena throwback (1,832,000) (4,137,000) (3,140,000) (3,274,000)
LB 987 Index income tax brackets, SS exemption 0 (8,347,000) (25,586,000) (38,131,000)
LB 1067 Change refunds, NE Advantage termination date (643,000) (1,040,000) (118,000) (126,000)
LB 1114 Change termination date, econ develop programs 0 50,000 0 0
Cash Fund Transfer-In (LB 906) 0 6,800,000 0 0
2014 Revenue Bills (to be incorporated into Forecast) (2,475,000) (17,499,563) (46,687,606) (63,003,103)
Page 27
LB 96 exempts the sale of repairs and replacement parts for agricultural machinery or
equipment used in commercial agriculture from sales and use taxes starting October1, 2014.
Revenue loss by year and fund is estimated as follows:
Highway Capital Highway
Improvement Allocation
Fiscal Year: General Fund: Fund (State): Fund (Local): Total:
FY2014-15: ($6,759,000) ($274,000) ($48,000) ($ 7,081,000)
FY2015-16: ($9,280,000) ($376,000) ($66,000) ($ 9,722,000)
FY2016-17: ($9,514,000) ($385,000) ($68,000) ($ 9,967,000)
FY2017-18: ($9,719,000) ($393,000) ($69,000) ($10,181,000
LB 191 creates the Nebraska Job Creation and Mainstreet Revitalization Act. The bill provides
for a nonrefundable credit against either the income tax, the insurance premium tax, or the
financial institutions franchise tax beginning in the year a historically significant real property is
placed in service. The amount of the credit is equal to 20% of eligible expenditures up to a
maximum credit of $1 million. Total allocation of credits is capped at $15 million per year. If the
entire amount ($15 million) is not allocated in a year, the unallocated amount shall be carried
forward to the next year.
The credit may be utilized by any natural person, limited liability company, partnership, private
domestic or foreign corporation, a domestic or foreign 501(c)(3) nonprofit corporation or a political
subdivision. The entity who receives the original credit may transfer, sell, or assign up to 50% of
the credit (100% for a political subdivision or 501(c)(3) entity). Thereafter the credits may be
transferred, sold, or assigned multiple times either in whole or in part to any person or legal entity
and used against any liability for state income tax,
Historically significant real property is defined as real property used for any purpose, other than an
owner-occupied single-family detached residence, that is: (1) Individually listed in the National
Register of Historic Places; and (2) located within a district listed in the National Register of
Historic Places and is determined to be of historic significance to such district; and (3) is
individually designated pursuant to a landmark ordinance adopted by the pertinent political
subdivision and approved by the state historic preservation officer; or located within a district
designated pursuant to a preservation ordinance by a political subdivision providing for
rehabilitation, preservation, or restoration of historically significant real property and approved by
the state historic preservation officer.
Revenue loss by year is estimated as follows:
Fiscal Year: General Fund
FY2014-15: $ 0
FY2015-16: (5,003,000)
FY2016-17: (8,418,000)
FY2017-18: (11,168,000)
FY2018-19: (12,109,000)
Page 28
LB 814 provides that the sales and use tax proceeds derived from the sale or lease of
motorboats, personal watercraft, all-terrain vehicles and utility-type vehicles shall be deposited
into the newly created Game and Parks Commission Capital Maintenance Fund and used for the
repair/maintenance, etc. of Game and Park’s infrastructure. These sales and use taxes are
currently deposited into the General Fund, the State Highway Capital Improvement Fund and the
Highway Allocation Fund. The county treasurer will become responsible for collecting the tax on
all-terrain and utility-type vehicles when the purchaser makes a title application. The counties are
allowed to retain a portion of the proceeds as a collection fee.
LB 814 has a sunset date and is effective for the time period of October 1, 2014 to October 1,
2019. Revenue loss by year and fund is estimated as follows:
Highway Capital Highway
Improvement Allocation
Fiscal Year: General Fund: Fund (State): Fund (Local): Total:
FY2014-15 (3,006,563) (121,822) (21,498) (3,149,883)
FY2015-16 (3,540,606) (143,460) (25,317) (3,709,383)
FY2016-17 (3,540,606) (143,460) (25,317) (3,709,383)
FY2016-17 (3,540,606) (143,460) (25,317) (3,709,383)
LB 867 makes a number of changes to the Nebraska Revenue Act of 1967, the Sports Arena
Financing Assistance Act, the documentary stamp tax, and sections dealing with natural gas used
as a vehicular fuel.
The bill provides that determination, certification and subsequent remittance of monies from
Sports Arena Facility Support Fund be done on a quarterly rather than annual basis. While not
changing the overall amount owed under the current law, there is a cash flow with General Fund
revenue reductions in the first two years.
The bill provides a sales and use tax exemption for purchases by any historic automobile museum
of items which are displayed or held for display and are reasonable related to the general purpose
of the museum.
The bill changes the definition of “delivery charges” and “sales price” to exclude United States
postage charges on direct mail that is separately stated on an invoice, bill of sale, or similar
document given to the purchaser. This effectively exempts such charges from sales tax.
The bill exempts currency and bullion from sales tax. “Bullion” is defined as bars, ingots, or
commemorative medallions of gold, silver, platinum, or palladium or a combination of those
metals, for which the value depends on content and not form. “Currency” is defined as a coin or
currency made of gold, silver, or other metal or paper which is or has been used as legal tender.
This portion of LB 867 becomes operative on April 1, 2014.
The bill also exempts from the documentary stamp tax deeds transferring property without actual
consideration, to a nonprofit organization exempt from federal income tax and that is not a private
foundation. The documentary stamp tax rate is $2.25 per $1,000 of value and is distributed as
Page 29
follows: Affordable Housing Trust Fund ($0.95); county ($0.50); Behavioral Health Services Fund
($0.30); Homeless Shelter Assistance Fund ($0.25) and the Site and Building Fund ($0.25).
General Fund Revenue Loss FY2013-14 FY2014-15 FY2015-16 FY2016-17
Sports arena throwback to quarterly basis (1,378,000) (1,265,000) (132,000) (139,000)
Sales tax exempt - historic automobile museum 0 (96,000) (98,000) (100,000)
Sales tax exempt - postage charges on direct mail (454,000) (2,312,000) (2,447,000) (2,572,000)
Sales tax exempt - currency and bullion from 0 (464,000) (463,000) (463,000) ________ ___________ __________ __________ Total General Fund Revenue Loss (1,832,000) (4,137,000) (3,140,000) (3,274,000)
Documentary Stamp Tax Revenue Loss FY2013-14 FY2014-15 FY2015-16 FY2016-17
Affordable Housing Trust Fund 0 ($240,000) ($244,000) ($249,000)
Homeless Shelter Assistance Fund 0 (63,000) (64,000) (66,000)
Behavioral Health Services Fund 0 (76,000) (77,000) (79,000)
Site and Building Fund 0 (63,000) (64,000) (66,000)
County 0 (126,000) (129,000) (131,000) _________ ___________ __________ __________ Total Documentary Stamp Tax Revenue Loss 0 (568,000) (578,000) (591,000)
LB 987 makes several reductions dealing with Nebraska income tax. First, beginning with
taxable years beginning on or after January 1, 2015, the income brackets will be indexed for
inflation. The indexed rate is to be determined by the Tax Commissioner pursuant to section 1(f)
of the Internal Revenue Code of 1986, as amended. The indexing is to be done annually. The tax
rate is unchanged. Because of the annual indexing, the revenue loss attributed to the continuing
higher income brackets compounds over time.
Second, the bill provides for a reduction in federal adjusted gross income (AGI) by the amount
received as Social Security benefits which are included in federal AGI for Nebraska income tax
purposes. The adjustment applies to those taxpayers with federal AGI of $58,000 or less for
married filing joint returns and $43,000 or less for all other returns.
And third, beginning with tax year 2015, the bill provides an exclusion from AGI for a portion of
military retirement benefits. An individual may make a one-time election, within two years of their
separation from military service, to exclude 40% of their military benefit from AGI for seven
consecutive taxable years beginning in the year in which the election is made or they may choose
to exclude 15% of their military benefit from AGI for all taxable years beginning with the year in
which the individual turns age 67.
General Fund Revenue Loss FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18
Index income brackets for inflation 0 0 (10,000,000) (21,000,000) (33,000,000)
Reduce AGI, Social Security 0 (8,347,000) (14,930,000) (16,284,000) (18,617,000)
Reduce AGI, military retirement 0 (656,000) (847,000) (1,050,000)
__________ __________ __________ __________ __________
Total General Fund Revenue Loss 0 (8,347,000) (25,586,000) (38,131,000) (52,667,000)
Page 30
General Fund Appropriations
Page 31
Overview of the FY14 & FY15 General Fund Biennial Budget This section provides a summary of current General Fund appropriations which reflect the
cumulative impact of the original budget as enacted in the 2013 Session and changes made
during the 2014 Session. Table 12 contains a listing of the FY14 and FY15 significant increases
and reductions which account for about 97% of the total net change in General Fund
appropriations over the two year period. Table 13 provides a more detailed breakdown of
operations and state aid and provides a narrative description of major changes for each area.
This report provides a description of the major changes enacted during the 2014 Session. The
reader should refer to the 2013 Biennial Budget Report for a more detailed description of the
budget actions taken in the initial enactment of the FY14 / FY15 biennial budget.
Table 11 General Fund Appropriations FY2013-14 and FY2014-15
FY2012-13 Operations State Aid Construction Total
Total Per 2012 Session 1,259,610,962 2,352,040,560 20,772,233 3,632,423,755
2013 Session Deficits (5,612,847) (8,310,469) 0 (13,923,316)2013 Session State Claims 825,270 0 0 825,2702013 Session "A" bills 1,000,000 0 0 1,000,000
____________ ____________ ____________ ____________
Final Appropriation with deficits 1,255,823,385 2,343,730,091 20,772,233 3,620,325,709
FY2013-14 Operations State Aid Construction Total
Total Per 2013 Session 1,315,231,996 2,497,106,887 25,830,024 3,838,168,907
2014 Session-Committee Proposed 4,183,895 (6,749,578) 490,000 (2,075,683)2014 Session-State Claims 1,467,753 0 0 1,467,7532014 Session-Floor Actions 7,400,000 (7,400,000) 0 02014 Session-Governor Vetoes (7,730,467) 0 0 (7,730,467)2014 Session-Veto Overrides 7,727,467 0 0 7,727,4672014 Session "A" bills 3,681,544 0 0 3,681,544
____________ ____________ ____________ ____________
2014 Session - Deficits 16,730,192 (14,149,578) 490,000 3,070,614
Final Appropriation with deficits 1,331,962,188 2,482,957,309 26,320,024 3,841,239,521
Change over prior year (excluding deficits) Dollar 55,621,034 145,066,327 5,057,791 205,745,152 Percent 4.4% 6.2% 24.3% 5.7%
FY2014-15 Operations State Aid Construction Total
Total Per 2013 Session 1,395,116,374 2,617,466,291 28,310,000 4,040,892,665
2014 Session-Committee Proposed 12,722,518 (11,644,140) 1,024,444 2,102,8222014 Session-Floor Actions 0 110,322 0 110,3222014 Session-Mainline Governor Vetoes (3,020,764) (14,180,048) 0 (17,200,812)2014 Session-Mainline Veto Overrides 2,982,428 14,180,048 0 17,162,4762014 Session "A" bills 21,678,535 43,976,522 (2,897,000) 62,758,057Post 2014 Session 0 0 0 0
____________ ____________ ____________ ____________
2014 Session - Midbiennium Adjustments 34,362,717 32,442,704 (1,872,556) 64,932,865
Total Per 2014 Session 1,429,479,091 2,649,908,995 26,437,444 4,105,825,530
Change over prior year (excluding deficits) Dollar 114,247,095 152,802,108 607,420 267,656,623 Percent 8.7% 6.1% 2.4% 7.0%
Two Year Avg Growth (excluding deficits) 6.5% 6.1% 12.8% 6.3%
Page 32
Excluding deficits, FY13-14 reflects a $205.7 million (5.7%) increase over FY12-13, while FY14-
15 includes an additional $267.6 million (7.0%) increase over FY13-14. The average annual
increase for the biennium is 6.3%.
The following table highlights the major changes in the FY2013-14 and FY2014-15 General Fund
budget as compared to the FY12-13 base year appropriation. The items listed account for about
97% of the total net change in appropriations over the two year period. All items shown reflect the
cumulative impact of actions taken in the 2013 Session and subsequently modified in the 2014
Session.
Table 12 Significant Increases and Reductions - FY14 and FY5 (as revised) $ Change over FY13 Base Year Sum Total for Excludes FY14 deficits FY2013-14 FY2014-15 the Biennium
TEEOSA Aid to Schools (General Funds only) 48,021,232 76,704,757 124,725,989 Medicaid (other than FMAP, ACA, match shift) 34,924,526 61,415,450 96,339,976 General Increase (University & St Colleges) (4% / yr) 21,965,237 44,591,198 66,556,435 ACA Health Care Reform - oper & aid and contingency) 17,464,999 33,518,412 50,983,411 Federal Medicaid Match rate (op & aid) 18,885,855 48,665,837 67,551,692 Special Education 9,694,692 19,874,119 29,568,811 Employee salary increases (Agencies) 9,198,242 18,597,901 27,796,143 Developmental Disability aid (other than FMAP) 4,988,408 29,310,885 34,299,293 Child Welfare aid (other than FMAP and LB561) 7,279,505 7,558,944 14,838,449 Juvenile justice system changes - LB561 (net oper + aid) 5,864,004 8,635,996 14,500,000 Capital Construction 5,057,791 5,665,211 10,723,002 Inmate per diem costs (Corrections) 4,820,496 10,086,322 14,906,818 Community Colleges 3,514,806 7,170,204 10,685,010 Retirement, K-12 School / Judges / Patrol (5,700,515) 16,653,926 10,953,411 Resources Development Fund 0 10,492,793 10,492,793 Staffing, housing units (Corrections) 2,750,000 7,889,157 10,639,157 Supervised release, reentry probation - LB907 (Courts) 0 8,800,000 8,800,000 Early Childhood Endowment 4,000,000 4,000,000 8,000,000 Children’s Health Insurance (other than FMAP & ACA) 1,468,391 6,882,354 8,350,745 Early Childhood grant program 1,915,962 5,330,962 7,246,924 Juveniles, court jurisdiction - LB464 (Courts) 0 5,617,942 5,617,942 Vocational and Life Skills Program (oper+aid) (DCS) 0 5,000,000 5,000,000 Behavioral health aid (other than FMAP, match shift, ACA) 1,389,908 2,911,089 4,300,997 Salary adjustments and reclassifications (Courts) 1,087,137 2,487,089 3,574,226 Public/Community Health Aid 1,550,000 2,197,000 3,747,000 Wildfire Control Act of 2013 - LB634 (University+Military) 1,545,000 1,395,000 2,940,000 Young Adult Voluntary Services & Support - LB216 (DHHS) 1,048,518 1,585,597 2,634,115 General Operating inflation (State Agencies) 864,753 1,235,123 2,099,876 Pediatric Cancer Research (University) 0 1,800,000 1,800,000 Aging programs 229,989 1,464,027 1,694,016 Operations back to General Funds per LB495 (Education) 806,236 816,464 1,622,700 Replace federal HAVA funding (Sec of State) 390,000 990,000 1,380,000 Liquor Control Act enforcement - LB579 (Patrol) 652,000 522,000 1,174,000
Funds shifts (DHHS) (1,800,000) (1,000,000) (2,800,000) Final phase-out of county assessor takeover (Revenue) (616,540) (616,540) (1,233,080) All Other (net) 2,484,520 15,152,556 17,637,076 ____________ ____________ ____________
Total (combined 2013 and 2014 Session actions) 205,745,152 473,401,775 679,146,927 By Session:
2013 Session 205,745,152 408,468,910 614,214,062 2014 Session deficits 64,932,865 64,932,865 ____________ ____________ ____________
Total 205,745,152 473,401,775 679,146,927
Page 33
Table 13 Summary of FY2013-14 & FY2014-15 General Fund Budget
FY2013-14 Change over Prior Yr Change over Prior Yr % of
w/o Deficits With deficits FY13-14 (w /o deficits) FY14-15 (w /o deficits) 2 Yr Avg Total
FY2013-14 FY2014-15 $ % $ % % Change FY14-15
Agency Operations
University/Colleges 567,109,821 592,212,914 23,660,238 4.4% 25,103,093 4.4% 4.4% 14.4%
Health & Human Services System 233,169,499 235,054,760 (3,255,760) -1.4% 1,885,261 0.8% -0.3% 5.7%
Correctional Services 167,048,868 181,813,346 10,208,599 6.5% 14,764,478 8.8% 7.7% 4.4%
Courts 107,213,686 149,427,839 22,948,203 27.2% 42,214,153 39.4% 33.2% 3.6%
State Patrol 56,153,379 56,576,821 1,899,931 3.5% 423,442 0.8% 2.1% 1.4%
Revenue 25,398,331 26,428,021 (244,199) -1.0% 1,029,690 4.1% 1.5% 0.6%
Retirement Board 24,290,810 46,645,251 (5,700,515) -19.0% 22,354,441 92.0% 24.7% 1.1%
Other 39 Agencies 134,847,602 141,320,139 6,104,537 4.7% 6,472,537 4.8% 4.8% 3.4%____________ ____________ _________________ _________________ ______ ______
Total-GF Operations 1,315,231,996 1,429,479,091 55,621,034 4.4% 114,247,095 8.7% 6.5% 34.8%
State Aid to Individuals/Others
Medicaid 710,247,560 777,723,897 65,674,366 10.2% 67,476,337 9.5% 9.8% 18.9%
Child Welfare Aid 156,756,327 137,778,999 2,981,743 1.9% (18,977,328) -12.1% -5.3% 3.4%
Public Assistance 107,116,945 110,319,888 (1,407,840) -1.3% 3,202,943 3.0% 0.8% 2.7%
Developmental disabilities aid 109,173,012 137,040,195 7,294,641 7.2% 27,867,183 25.5% 16.0% 3.3%
Behavioral Health aid 70,759,664 67,444,214 (4,373,555) -5.8% (3,315,450) -4.7% -5.3% 1.6%
Childrens Health Insurance (SCHIP) 17,638,937 27,560,027 4,531,187 34.6% 9,921,090 56.2% 45.0% 0.7%
ACA Contingency 0 0 0 -- 0 100.0% na 0.0%
Aging Programs 8,229,427 9,463,465 229,989 2.9% 1,234,038 15.0% 8.8% 0.2%
Higher Ed Student Aid programs 7,308,156 7,553,156 315,000 4.5% 245,000 3.4% 3.9% 0.2%
Public Health Aid 6,040,612 6,437,612 1,250,000 26.1% 397,000 6.6% 15.9% 0.2%
Community health centers 4,058,060 4,308,060 300,000 8.0% 250,000 6.2% 7.1% 0.1%
Business Innovation Act 6,760,000 6,760,000 (396,396) -5.5% 0 0.0% -2.8% 0.2%
All Other Aid to Individuals/Other 8,803,123 12,512,373 823,000 10.3% 3,709,250 42.1% 25.2% 0.3%____________ ____________ _________________ _________________ ______ ______
Total-GF Aid to Individuals/Other 1,212,891,823 1,304,901,886 77,222,135 6.8% 92,010,063 7.6% 7.2% 31.8%
State Aid to Local Govts
State Aid to Schools (TEEOSA) 884,888,317 913,571,842 48,021,232 5.7% 28,683,525 3.2% 4.5% 22.3%
Special Education 203,588,534 213,767,961 9,694,692 5.0% 10,179,427 5.0% 5.0% 5.2%
Aid to Community Colleges 91,384,953 95,040,351 3,514,806 4.0% 3,655,398 4.0% 4.0% 2.3%
Homestead Exemption 71,600,000 73,521,000 (900,000) -1.2% 1,921,000 2.7% 0.7% 1.8%
Aid to ESU's 14,051,761 14,051,761 0 0.0% 0 0.0% 0.0% 0.3%
Early Childhood programs 5,915,962 9,235,164 5,915,962 #DIV/0! 3,319,202 56.1% na 0.2%
Other Aid to Local Govt 12,785,537 25,819,030 1,597,500 14.3% 13,033,493 101.9% 51.9% 0.6%____________ ____________ _________________ _________________ ______ ______
Total-GF Aid to Local Govt 1,284,215,064 1,345,007,109 67,844,192 5.6% 60,792,045 4.7% 5.2% 32.8%
Capital Construction 25,830,024 26,437,444 5,057,791 24.3% 607,420 2.4% 12.8% 0.6%
Total General Funds 3,838,168,907 4,105,825,530 205,745,152 5.7% 267,656,623 7.0% 6.3% 100.0%
Page 34
Agency Operations accounts for the costs of operating state agencies including costs such as
employee salaries and benefits, data processing, utilities, vehicle and equipment purchases, fuel
and oil, etc... In the FY2014-15 budget, 34.8% of all General Fund appropriations are for agency
operations. Although there are 47 state agencies that receive General Fund appropriations higher
education (University of Nebraska and State Colleges) and the six largest agencies (Health and
Human Services, Corrections, Courts, State Patrol, Revenue, and Retirement Board) account for
90% of state operations. Most of the General Funds for the Retirement Board are state
contributions for the K-12 School employee retirement plan.
General Funds for agency operations shows a
net $55.6 million increase (4.4%) in FY13-14
and a $114.3 million increase (8.7%) in FY14-
15. The second year increase is inflated by the
shift of significant funds of money from child
welfare aid to agency operations under the
Court System as part of the juvenile justice
reforms and conversion from DHHS to probation
under the Courts. This shift of funds from aid to
operations amounted to $3.7 million in FY2013-
14 and $23.4 million in FY2014-15.
The most significant increases in operations in FY13-14 are $21.9 million for a 4.0% increase in
support for the University of Nebraska and State Colleges, $9.2 million for a 2.25% salary
increase for state employees, and $4.9 million for administrative costs related to implementation
of the Affordable Care Act (ACA) health care reform. This includes staffing to cover a projected
increase in the number of Medicaid and Children’s Health Insurance clients who are eligible under
current law but not participating at the present time. Other major operations include $4.8 million
for inmate per diem costs (food, medical) and $2.75 million to restore a previous budget cut and
reopen additional correctional housing.
The larger increase in FY14-15 can be attributed to three items, state contributions to defined
benefit retirement plans, LB561 (2013) which made significant changes to the juvenile justice
system, LB 907 (2014) relating to corrections population issues and probation, reporting centers,
and reentry programs, and LB464 (2014) which related to juveniles and court jurisdiction. FY14-
15 includes a net $15 million increase in state contributions to the defined benefit retirement
plans; a $5.7 million reduction with the sunset of a current statutory COLA contribution and a $20
million increase in state contributions for schools (contribution increase of 1% to 2% of salaries)
and a flat $1.4 million allocation for the state patrol plan. In the absence of legislation, an even
larger increase would have been required to cover the actuarial shortfall in these plans.
Agency Operations (change over FY13 base year) FY2013-14 FY2014-15 Two Yr Total
General Increase (University & St Colleges) (4% / yr) 21,965,237 44,591,198 66,556,435
Salaries (State Agencies) 9,198,242 18,597,901 27,796,143
Juvenile justice changes, shift from aid - LB561 (Courts) 3,725,208 23,439,194 27,164,402
Inmate per diem costs (Corrections) 4,820,496 10,086,322 14,906,818
Retirement, K-12 School / Judges / Patrol (5,700,515) 16,653,926 10,953,411
Staffing, housing units (Corrections) 2,750,000 7,889,157 10,639,157
Health Care reform implementation (DHHS operations) 4,964,999 5,018,412 9,983,411
Juvenile justice system, net new funds - LB561 (Courts) 4,000,000 4,833,670 8,833,670
Page 35
(continued from prior page) FY2013-14 FY2014-15 Two Yr Total
Supervised release, reentry probation - LB907 (Courts) 0 8,800,000 8,800,000
Juveniles, court jurisdiction - LB464 (Courts) 0 5,617,942 5,617,942
Salary adjustments and reclassifications (Courts) 1,087,137 2,487,089 3,574,226
Wildfire Control Act of 2013 - LB634 (University+Military) 1,545,000 1,395,000 2,940,000
General Operating inflation (State Agencies) 864,753 1,235,123 2,099,876
Young Adult Voluntary Services & Support - LB216 (DHHS) 1,048,518 1,585,597 2,634,115
Pediatric Cancer Research (University) 0 1,800,000 1,800,000
Operations back to General Funds per LB495 (Education) 806,236 816,464 1,622,700
Vocational and Life Skills Program - LB907 (Corrections) 0 1,500,000 1,500,000
Replace federal HAVA funding (Sec of State) 390,000 990,000 1,380,000
Liquor Control Act enforecement - LB579 (Patrol) 652,000 522,000 1,174,000
Nebraska Health Information Initiative (DHHS) 500,000 500,000 1,000,000
Final phaseout of county assessor takeover (Revenue) (616,540) (616,540) (1,233,080)
Funds shifts (DHHS) (1,800,000) (1,000,000) (2,800,000)
All Other 5,420,263 13,125,674 18,545,937 __________ __________ __________
Total - Operations 55,621,034 169,868,129 225,489,163
Aid to Individuals. About 32% of all General Fund appropriations are classified as state aid to
individuals. Aid to individuals includes programs such as Medicaid, Child Welfare, Public
Assistance programs such as AFDC, student scholarships, etc... This area also includes aid to
quasi-government units that are those local agencies that do not have the authority to levy
property taxes such as area agencies on
aging, behavioral health regions and
developmental disability regions.
This area has the largest overall growth in
the budget over the two years with an
average increase of 7.2%. There was a
net increase of $77.2 million (6.8%) in
FY2013-14. This includes a $23.8 million
increase for Medicaid eligibility and
utilization, $18.3 million to offset a lower
federal Medicaid match rate (FMAP), $14.6
million for a 2.25% DHHS provider rate
increase, $12.5 million for projected higher participation in Medicaid and Children’s Health
Insurance (SCHIP) under the Affordable Care Act (ACA) health care reform, and $4.2 million for
child care rates.
Growth in FY2014-15 is driven by another $29 million to offset a continued decline in the FMAP,
$22.6 million for Medicaid eligibility and utilization, $16 million for continued phase-in of ACA
health care reform, and $12.4 million to fully implement the new developmental disability rate
methodology.
The largest spending increase are was provided for the developmental disability program
including funds for new clients transitioning from high school ($1,400,000 FY14 and $2.8 million
FY15), funds to help reduce the waiting list ($1,946,650 FY14 and $8,638,300 FY15) and funding
to start implementing a new rate methodology ($2.8 million as provider rate increase in FY14 and
Page 36
then in FY15 another $2.6 million for provider rates plus $12.1 million for the new rate
methodology).
Aid to Individuals (change over FY13 base year) FY2013-14 FY2014-15 Two Yr Total
Medicaid (other than FMAP, ACA, match shift) 34,924,526 61,415,450 96,339,976
Federal Medicaid Match rate (aid only) 18,471,916 47,614,465 66,086,381
ACA Health Care Reform (aid, net impact) 12,500,000 28,500,000 41,000,000
Developmental Disability aid (other than FMAP) 4,988,408 29,310,885 34,299,293
Child Welfare aid (other than FMAP and LB561) 7,279,505 7,558,944 14,838,449
Children’s Health Insurance (other than FMAP & ACA) 1,468,391 6,882,354 8,350,745
Behavioral health aid (other than FMAP, match shift, ACA) 1,389,908 2,911,089 4,300,997
Public/Community Health Aid 1,550,000 2,197,000 3,747,000
Vocational and Life Skills Program (DCS) 0 3,500,000 3,500,000
Aging programs 229,989 1,464,027 1,694,016
Child Welfare aid (LB561 shift to courts operations) (3,725,208) (23,439,194) (27,164,402)
Public Assistance (other than FMAP) (1,746,904) 971,324 (775,580)
All Other (108,396) 345,854 237,458 __________ __________ __________
Total - Aid to Individuals 77,222,135 169,232,198 246,454,333
Aid to Local Government. This area accounts for aid payments to local governments and
accounts for 34% of all General Fund appropriations. This category includes those local entities
that have the authority to levy a property tax such as cities, counties, and schools and includes
programs such as state aid to schools (TEEOSA), special education, community colleges, and
homestead exemption reimbursements. Note that state payments for teacher retirement are not
included under this category as those amounts are credited directly to the teacher retirement fund
and are not checks written to school districts nor do those amounts show up as a school revenue
or subsequent expenditure.
Collectively, this area receives a $67.8 million
(5.6%) increase in FY2013-14 and another
$60.7 million (4.7%) increase in FY2014-15.
Significant increases in FY2013-14 include
TEEOSA school aid ($48.0 million, 5.7%),
Special Education ($9.7 million, 5.0%), $4
million for additional state support for the Early
Childhood Endowment program, and
Community College aid ($3.5 million, 4.0%).
FY2013-14 funding also includes $1,665,962 to partially restore General Funds for early
childhood aid. For the last two years the program was funded at $3,365,962 with Education
Innovation Fund (lottery proceeds). Although prior law called for this to return to General Funds,
the legislation enacted in the 2013 Session continued using $1.7 million of lottery funds for this
program.
The most significant increases in FY2014-15 include an additional $28.7 million for TEEOSA
school aid, and two one-time items included in the 2014 session; $10.5 million for the Resources
Development Fund and $3.4 million for the Early Childhood grant program.
Page 37
Aid to Local Governments (change over FY13 base year) FY2013-14 FY2014-15 Two Yr Total
TEEOSA Aid to Schools (Gen Fund only net) 48,021,232 76,704,757 124,725,989
Special Education 9,694,692 19,874,119 29,568,811
Community Colleges 3,514,806 7,170,204 10,685,010
Resources Development Fund 0 10,492,793 10,492,793
Early Childhood Endowment 4,000,000 4,000,000 8,000,000
Early Childhood grant program 1,915,962 5,330,962 7,246,924
Homestead Exemption (net after bills) (900,000) 1,021,000 121,000
County Juvenile Services aid 1,522,425 3,522,425 5,044,850
All Other 75,075 519,977 595,052 __________ __________ __________
Total - Aid to Local Govt 67,844,192 128,636,237 196,480,429
Capital construction which accounts for about .7% of General Fund appropriations includes
costs for new construction and major repairs and renovation of state-owned facilities. The term
"major" is used with respect to repair and renovations as relatively small or on-going projects are
routinely done within agencies operating budgets. Road construction and maintenance is not
included in this category but included under cash fund agency operations.
The budget contains funds to initiate several significant projects including a building for a chemical
dependency program at the Hastings Regional Center campus, renovations of the Conn Library at
Wayne State College, construction of a Rangeland Center at Chadron State College, and
construction of a new facility to house the UNMC College of Nursing program in Lincoln.
Although not shown as a General Fund appropriation, several projects were financed with
transfers from the Cash Reserve Fund (CRF) and General Fund (GF) transfers to the Nebraska
Capital Construction Fund (NCCF). This includes $47 million for a new Central Nebraska
Veterans Home to replace the facilities at the current Grand Island Veterans Home enacted in the
2013 session, and two projects initiated in the 2014 session: replacement of the heating,
ventilation, and air conditioning (HVAC) system in the State Capitol (first three years) and
installation of fountains in the four State Capitol courtyards as originally envisioned when the
building was built.
NCCF Projects funded with GF & CRF transfers FY2013-14 FY2014-15 2 Yr Total
#25-DHHS Central Nebraska Veterans' Home (CRF) 43,015,459 0 43,015,459
#25-DHHS Central Nebraska Veterans' Home (GF) 4,000,000 0 4,000,000
#65-DAS State Capitol HVAC system replacement (CRF) 0 11,701,900 11,701,900
#65-DAS State Capitol courtyard fountains (CRF) 0 2,500,000 2,500,000
Total NCCF projects financed with GF & CRF Transfers 47,015,459 14,201,900 61,217,359
Page 38
Historical General Fund Appropriations
Table 14 Historical General Fund Appropriations Agency Aid to Aid to
Excludes Deficits Operations Ind/Other Local Govt Construction Total % Change
FY1993-94 Approp 676,413,141 346,829,183 597,466,962 7,264,678 1,627,973,964 2.0%
FY1994-95 Approp 695,515,177 384,690,537 632,796,916 5,954,449 1,718,957,079 5.6%
FY1995-96 Approp 725,857,466 410,620,962 652,868,725 20,831,107 1,810,178,260 5.3%
FY1996-97 Approp 750,780,005 440,564,731 674,622,322 19,843,088 1,885,810,146 4.2%
FY1997-98 Approp 781,597,662 461,238,934 695,680,295 41,250,742 1,979,767,633 5.0%
FY1998-99 Approp 818,104,542 489,445,789 860,034,724 60,994,066 2,228,579,121 12.6%
FY1999-00 Approp 877,214,679 523,395,392 868,657,713 54,676,163 2,323,943,947 4.3%
FY2000-01 Approp 928,262,744 598,336,773 885,742,858 46,446,858 2,458,789,233 5.8%
FY2001-02 Approp 989,205,923 646,333,088 944,027,473 27,384,852 2,606,951,336 6.0%
FY2002-03 Approp 1,003,728,744 647,793,727 951,729,511 18,044,257 2,621,296,239 0.6%
FY2003-04 Approp 999,655,261 705,616,238 929,503,078 20,515,031 2,655,289,608 1.3%
FY2004-05 Approp 1,018,017,210 785,572,536 935,446,662 19,046,316 2,758,082,724 3.9%
FY2005-06 Approp 1,079,894,592 850,904,771 1,018,289,225 23,350,481 2,972,439,069 7.8%
FY2006-07 Approp 1,151,463,639 938,524,594 1,058,983,563 31,878,981 3,180,850,777 7.0%
FY2007-08 Approp 1,172,764,317 978,026,675 1,146,759,149 8,150,822 3,305,700,963 3.9%
FY2008-09 Approp 1,221,557,978 1,015,815,632 1,236,048,810 8,238,322 3,481,660,742 5.3%
FY2009-10 Approp 1,210,527,988 880,256,943 1,220,339,540 14,172,233 3,325,296,704 -4.5%
FY2010-11 Approp 1,253,663,584 946,598,966 1,191,036,509 13,802,233 3,405,101,292 2.4%
FY2011-12 Approp 1,225,276,661 1,057,283,733 1,173,944,302 14,027,233 3,470,531,929 1.9%
FY2012-13 Approp 1,259,610,962 1,135,669,688 1,216,370,872 20,772,233 3,632,423,755 4.7%
FY2013-14 Enacted 1,315,231,996 1,212,891,823 1,284,215,064 25,830,024 3,838,168,907 5.7%
FY2014-15 Enacted 1,429,479,091 1,304,901,886 1,345,007,109 26,437,444 4,105,825,530 7.0%
Average Annual Growth
FY04 / FY05 Biennium 0.7% 10.1% -0.9% 2.7% 2.6% FY06 / FY07 Biennium 6.4% 9.3% 6.4% 29.4% 7.4%
FY08 / FY09 Biennium 3.0% 4.0% 8.0% -49.2% 4.6%
FY10 / FY11 Biennium 1.3% -3.5% -1.8% 29.4% -1.1%
FY12 / FY13 Biennium 0.2% 9.5% 1.1% 22.7% 3.3%
FY14 / FY15 Biennium 6.5% 7.2% 5.2% 12.8% 6.3%
Avg FY95 to FY05 (10 yr) 3.9% 7.4% 4.0% 12.3% 4.8%
Avg FY05 to FY15 (10 yr) 3.5% 5.2% 3.7% 3.3% 4.1%
Avg FY95 to FY15 (20 yr) 3.7% 6.3% 3.8% 7.7% 4.4%
Page 39
2014 Session Budget Actions The mid-biennium budget adjustments increase FY13-14 and FY14-15 General Fund new
appropriations by a net total of $68 million over the two year period. This equals .9% of the
original two-year appropriation. A summary listing of 2014 General Fund budget adjustments is
contained Table 15 as shown below. This summary listing accounts for 90% of the total budget
adjustments and includes items with a net two year impact of $500,000 or more. A complete
listing of all items is include in Appendix A.
Table 15 Significant General Fund Budget Adjustments – 2014 Session
FY2013-14 FY2014-15 2 Yr total
SIGNIFICANT INCREASES:
1 DHHS-Lower FFY2015 FMAP 0 16,919,325 16,919,325
2 LB 907 Supervised release, reentry probation, Voc & Life Skills 0 14,269,362 14,269,362
3 Nat Resources-One-time funding, Resources Development Fund 0 10,492,793 10,492,793
4 Corrections-Inmate per diem and medical expenses 3,950,000 4,050,000 8,000,000
5 Corrections-Inmate capacity issues 880,972 5,139,157 6,020,129
6 LB 464 Juveniles, court jurisdiction, indictment procedures 0 5,426,692 5,426,692
7 DHHS-Increase funding, waiting list - developmental disability aid 0 5,000,000 5,000,000
8 LB986 & LB1087 Homestead exempt income limits, disabled vets 0 4,621,000 4,621,000
9 DHHS-MAGI Eligibility Rules Under ACA (SCHIP) 1,369,305 2,775,125 4,144,430
10 Education-Early Childhood grant program, one-time funds 0 3,510,000 3,510,000
11 LB 690 Aging Nebraskans Task Force 0 2,857,248 2,857,248
12 DHHS-State Disabled - Medical (net) 742,200 1,598,100 2,340,300
13 DHHS-ACA Section 2101F Population (SCHIP) 440,134 1,665,075 2,105,209
14 DHHS-2% increase in provider rates - developmental disability aid 0 2,595,048 2,595,048
15 University-Pediatric cancer research (LB 764) 0 1,800,000 1,800,000
16 State Claims (included in Claims Bill) 1,467,753 0 1,467,753
17 Historical Society-Move from K St facility to Experian Building 691,086 485,086 1,176,172
18 LB 920 Adopt the Public Guardianship Act 0 886,687 886,687
19 LB 438 Priority schools, intervention teams 81,544 776,832 858,376
20 LB 254 Autism insurance coverage, amino acid-based formulas 0 622,500 622,500
21 LB 853 Changes, Young Adult Voluntary Services & Support Act 0 550,968 550,968
22 DHHS-State Ward Permanency Pilot project (LB 936) 0 528,000 528,000 __________ _________ __________
23 Subtotal-Increases listed 9,622,994 86,538,998 96,191,982
SIGNIFICANT REDUCTIONS: 24 Homestead Exemption (to current law) (6,500,000) (6,000,000) (12,500,000)
25 Medicare Part D clawback reduction (2,800,000) (4,800,000) (7,600,000)
26 Base Adjustments, DHHS programs (800,000) (6,922,744) (7,722,744)
27 TEEOSA state aid: to current law, LB725, LB967, LB276) 0 (7,214,510) (7,214,510) __________ __________ ___________
28 Subtotal-Reductions listed (10,100,000) (24,937,254) (35,037,479)
29 ALL OTHER (Net) 3,547,620 3,301,121 6,848,741
30 GENERAL FUND NEW APPROPRIATIONS 3,070,614 64,932,865 68,003,479
Page 40
Table 16 General Fund Appropriations by Bill – 2014 Session
Appropriation. Appropriation Estimated Estimated
FY2013-14 FY2014-15 FY2015-16 FY2016-17
LB 191 Nebr Job Creation and Mainstreet Revitalization Act 0 395,929 122,100 122,100
LB 254 Autism insurance coverage, amino acid-based formulas 0 622,500 1,574,467 1,574,467
LB 276 Medicaid plan, TEEOSA, early intervention act 0 42,746 42,746 1,825,746
LB 359 Eligibility redeterminations, child care subsidy 0 370,152 787,968 787,968
LB 438 Priority schools, intervention teams 81,544 776,832 776,832 776,832
LB 464 Juveniles, court jurisdiction, indictment procedures 0 5,426,692 8,649,784 17,751,013
LB 560 Enforcement, certain labor and employment acts 0 154,445 155,731 155,731
LB 660 Extend pilot project, case management contract 0 75,000 0 0
LB 661 Voter registration, website and use of DMV records 0 50,000 0 0
LB 690 Aging Nebraskans Task Force ** 0 2,857,248 5,335,568 5,335,568
LB 725 Change TEEOSA provisions, local effort rate 0 32,929,695 0 0
LB 744 Nebraska Sesquicentennial Commission 0 94,000 94,000 94,000
LB 814 Sales tax on watercraft / ATV to Game & Parks 0 44,485 0 0
LB 853 Changes, Young Adult Voluntary Services & Support Act 0 550,968 685,207 685,207
LB 867 Sales tax exemptions, sports arena throwback payments 0 52,700 45,200 45,200
LB 901 Psychology internships, Behavioral Health Ed Center 0 374,000 417,750 578,875
LB 907 Supervised release, reentry probation, Voc & Life Skills 0 14,269,362 14,252,337 14,252,337
LB 920 Adopt the Public Guardianship Act 0 886,687 1,504,821 1,504,821
LB 923 Training, suicide awareness and prevention 0 142,000 142,000 142,000
LB 967 TEEOSA, Ed Innovation, early childhood 0 0 600,000 2,300,000
LB 986 Change homestead exemption income limitations 0 4,621,000 5,468,000 5,601,000
LB 987 Index income tax brackets, SS exemption 0 176,966 44,338 44,338
LB 994 Change vital statistics fees 0 500,000 0 0
LB 999 Planning-Hastings Correctional Behavioral Health 0 (2,897,000) 2,897,000 0
LB 1016 Purchase a state aircraft, authorization 3,600,000 0 0 0
LB 1087 Homestead exemption, disabled veterans 0 0 406,000 416,000
LB 1098 Membership / duties, Natural Resources Comm. 0 41,650 18,700 18,700
LB 1115 Power Review Board, study and state policy 0 200,000 0 0
__________ __________ __________ __________
Subtotal - A Bills 3,681,544 62,758,057 44,020,549 54,011,903
LB 905 Mainline Midbiennium adjustments (2,078,683) 2,174,808 (15,129,864) (15,411,182)
LB 949 State Claims 1,467,753 0 0 0
__________ __________ __________ __________
Total General Funds - 2014 Session 3,070,614 64,932,865 28,890,685 38,600,721
Page 41
Probation Officer Reclassification (Supreme Court)
In recent years, the Probation System has moved resources and personnel to concentrate on the
supervision of those probationers who are at the highest risk to reoffend which include
probationers who are chronic substance abusers, domestic violence and sexual assault
perpetrators, serial drunk drivers, mentally ill, or gang members. Currently, the minimum salary of
approximately $34,000 after one year of employment is the same for officers who supervise low-
risk probationers and for officers who supervise high-risk probationers. The goal is to compensate
officers who supervise high-risk probationers for the additional skills and abilities needed and
consists of increasing the minimum salary to approximately $41,000. For new officers and
existing officers whose current salary is below the minimum, salaries will be increased to the
minimum. For existing officers whose salaries are above the minimum, smaller increases will be
given to maintain salary equity. This additional funding, $282,683 General funds, would result in
an overall 5% increase for those positions affected. Some officers would receive a larger
increase, some a smaller increase.
Court Employee Compensation (Supreme Court)
In 2013, the Supreme Court contracted with the National Center for State Courts (NCSC) to
conduct a salary survey and make recommendations on appropriate pay rates for court and
probation employees. The Appropriations Committee had requested that the Supreme Court
conduct this salary survey. The NCSC salary survey found that many positions are paying 5% to
25% below the market rate. The Supreme Court requested a salary limit (PSL) increase to bring
these positions up to the NCSC recommended level. Estimated cost would be $5.3 million ($4.6
million PSL)
As the salary survey report was completed January 4, 2014 the agency request was submitted at
their budget hearing. Only PSL was requested as the agency would use carry-over funds, an
estimated $4.5 million, to fund this salary increase in FY2014-15. Employees would receive
increases of 5%, 10%, 15%, 20%, or 25%, and some employees would receive no increase.
The Legislature approved only a portion of the request increasing the salary limit by $1.5 million
so that the $4.5 million carryover funds would cover both the FY2014-15 increase as well as the
two years of the following biennium.
Juvenile Service Delivery Project Deficit (Supreme Court)
LB561 passed in 2013, reformed juvenile justice by transitioning oversight of juveniles from the
Department of Health and Human Services (DHHS) to Probation Administration. To implement
LB561, Probation submitted a fiscal note for approximately $31 million. Probation received
approximately $19 million transferred from DHHS. Understanding this amount could likely not be
sufficient, a process was established in LB561A to allow DHHS to transfer funds to Probation if
needed. Probation estimated a shortfall of $7.4 million for FY13-14 only. All attempts to use the
LB561A transfer process were unsuccessful. The budget included a $7.4 million contingency
appropriation made to a separate budget program and only to be used if the agency certifies to
the state budget administrator that funds available in the regular probation program are
insufficient. The $7.4 million FY13-14 deficit amount was then offset through a reduction in
excess General Fund appropriations in Public Assistance ($5,000,000) and Medicaid
($2,400,000)
Page 42
LB 464 Juvenile Court Jurisdiction (Supreme Court)
LB464 enacted in the 2014 session, changes court jurisdiction over juveniles and arraignment
procedures. The bill changes provisions regarding the exclusive original jurisdiction of the
Juvenile Court for juveniles age 16 and 17. The bill phases-in this jurisdiction change (age 16 on
January 1, 2015 and age 17 on January 1, 2017) with the full impact not realized until FY2016-17. # of Gen Fund Positions Appropriations
FY2014-15 15.0 5,167,942
FY2015-16 42.0 8,138,315
FY2016-17 78.0 17,239,544
The largest areas of anticipated expenditures noted in the above-table are for Probation Officers
and other probation staff, treatment for juveniles, pre-adjudication out-of-home placements, and
pre-adjudicated evaluations. The Department of Health and Human Services will incur additional
costs for detention and transportation estimated to be $505,067 for a full-year.
The bill also changes provisions relating to juvenile facilitated conferencing and $450,000 General
Funds was shifted from the Department of Health and Human Services to the office of the State
Court Administrator’s for the purpose of making the State Court Administrator directly responsible
for contracting and paying for prehearing conferences.
LB 920 Public Guardianship Act. (Supreme Court)
This act, operative on January 1, 2015, establishes the Office of Public Guardianship under the
jurisdiction of the Nebraska State Court Administrator, and will employ a director, deputy public
guardian and up to 12 associate guardians. The functions of the office include providing
immediate response when a guardian is needed in an emergency situation; provide an option
upon the resignation, removal, or discharge of a guardian so that there is no lapse in service to
the ward or protected person; promote or provide public education to increase the awareness of
the duties of guardians and encourage more people to serve as private guardians; recruit
members of the general public or family members to serve as guardians and provide adequate
training and support to enhance their success.
The bill also creates the Advisory Council on Public Guardianship to advise the Public Guardian
on the administration of public guardianship and public conservatorship including developing
guidelines for a sliding scale of fees to be charged for public guardianship and public
conservatorship services. These fees would be credited to the Public Guardianship Cash Fund.
Costs to implement this bill are shown below:
# Positions GF Appropriation Item FY14-15 FY15-16 FY14-15 FY15-16
Public & Deputy Public Guardian 1.00 2.00 61,128 125,312 Associate Public Guardian 6.00 12.00 242,946 498,040 Education Coordinator 0.50 1.00 20,246 41,503 Support Staff 1.50 3.00 49,968 102,433 Benefits 259,187 521,209 Operating 91,060 83,020 Travel 67,152 133,304 Capital outlay 95,000 0
TOTAL 9.00 18.00 886,687 1,504,821
Page 43
TEEOSA School Aid (Education)
The midbiennium budget changes adjusts the FY2014-15 budgeted TEEOSA aid amount to the
level called for under the prior law and subsequent changes enacted in the 2014 session. Overall
this is $7.2 million lower than estimated at Sine Die last year and included in the budget enacted
at that time. The following table shows the total amounts for TEEOSA aid (under current law), the
key data elements important in determining the total, and the dollar and percent changes.
Actual Actual Per 2014 Estimated Estimated
FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17
Key Assumptions School Disbursements 2.5% -0.6% 2.7% 3.7% 4.0% Gen Fund Operating Expenditures (GFOE) 3.3% 1.6% 2.6% 3.7% 4.0% Property Valuations (assessed) 4.3% 5.8% 8.5% 8.4% 4.0% Property Valuations (used in formula) 2.9% 2.1% 2.1% 5.5% 4.0% % of Valuation used in formula 92.1% 89.5% 84.3% 82.0% 82.0% Cost Growth Factor 0.50% 2.00% 4.00% 5.00% 5.00% Local Effort Rate $1.0395 $1.0300 $1.0000 $1.0000 $1.0000 TEEOSA Total by Fund Source General Funds 836,867,085 884,888,317 913,571,842 971,789,817 1,014,290,375 Insurance Premium Tax 15,000,000 21,693,014 19,400,000 22,385,000 24,444,625 Lottery funds, reorg incentives 212,958 0 0 0 0 ____________ __________ ____________ ____________ ____________
Total TEEOSA state aid 852,080,043 906,581,331 932,971,842 994,174,817 1,038,735,000 General Funds - Change over Prior Year Dollar 32,177,998 48,021,232 28,683,525 58,217,975 42,500,558 Percent 4.0% 5.7% 3.2% 6.4% 4.4% Two Yr Avg % Change 2.5% 4.5% 5.4% All Funds - Change over Prior Year Dollar 30,026,186 54,501,288 26,390,511 61,202,975 44,560,183 Percent 3.7% 6.4% 2.9% 6.6% 4.5% Two Yr Avg % Change -7.4% 4.7% 5.5%
The following table shows the chronology of the TEEOSA estimates since Sine Die 2013. The
amounts shown are total TEEOSA aid including amounts financed with General Funds and
Insurance Premium Tax. Since Sine Die 2013 the estimates for the formula data elements and
subsequent aid amount, have now been replaced with actual data that is utilized to certify the
FY2014-15 TEEOSA state aid. This includes calculation of formula students, actual Annual
Financial Report data which is the basis for calculating NEEDS and other receipts, and property
valuations which is the basis for calculating yield from local effort rate. The result is a significant
reduction in the amount of aid that is required by the formula under existing law compared to the
estimate made last spring.
There were three revisions in the TEEOSA number. First revisions were made at the statutory
joint meeting where the Department of Education (NDE), the Property Tax Administrator, the
Legislative Fiscal Analyst, and the budget division of DAS are to provide an estimate for the
upcoming year. The second changes occurred with the development of the NDE calculation of
aid under the current law in January 2014.
The final change was the enactment of legislation in the 2014 session. LB725 lowered the
FY2014-15 local effort rate (LER) from $1.03 to $1.00. For the most part, this returns TEEOSA
Page 44
funding for FY2014-15 to the level originally budgeted in the 2013 legislative session. This shows
as a one-time impact as under prior law the LER was already scheduled to drop to $1.00 starting
in FY2015-16. Other legislation which affected TEEOSA LB967 which eliminates the instructional
time allowance and teacher education allowances in the state aid formula beginning in FY2016-17
and reduces the amount allocated in the formula for each allowance by 50% in FY2015-16.
All Funds All Funds All Funds All Funds
Chronology of TEEOSA Aid to Schools FY2013-14 FY2014-15 FY2015-16 FY2016-17
Sine Die 2013 906,581,331 940,186,352 1,035,653,344 1,080,211,844
Valuation, 2013 from 7.94% to 8.52% actual 0 (6,782,784) (7,054,096) (7,336,259)
Valuation; 2014 (4.0% to 8.5%), 2015 (keep at 4%) 0 0 (70,221,339) (73,025,681)
Change factor, yield from LER used in formula 0 6,260,710 66,886,485 69,561,944
Spending growth, SFY14 3.5% to 3.72%, SFY15 stays at 4% 0 0 6,745,591 7,015,415
Revise system averaging adjustment 0 2,930,944 5,759,021 5,989,382
Revise formula NEEDS stabilization 0 1,197,189 (2,455,362) (2,553,576)
Revise student growth adjustment 0 (1,893,464) (1,963,901) (2,042,457)
Revise new school adjustment 0 (5,888,735) (6,107,796) (6,352,108)
Change in NEEDS gained or lost in basic funding calculation 0 2,391,425 11,514,835 11,975,428
Change in Learning Community, impact of non-equalization 0 (117,139) (2,307) (602)
Remove plug numbers 0 (427,663) 959,861 276,394
Voluntary termination in out years 0 0 (3,018,695) (3,139,443) __________ __________ __________ __________ Total Change - Oct 2013 Joint Meeting 0 (2,329,517) 1,042,297 368,437
Oct 2013 Joint Meeting 906,581,331 937,856,835 1,036,695,641 1,080,580,281
Actual FY13 AFR, lower disbursement growth 0 (9,554,007) (9,909,417) (10,305,793)
Actual FY13 AFR, lower fed categorical GFOE adjustment 0 19,860,274 20,599,076 21,423,039
Actual FY13 AFR, higher PL 81-874 impact aid GFOE adjustment 0 (10,770,195) (11,170,847) (11,617,680)
Actual FY13 AFR, higher retirement GFOE adjustment 0 (9,810,270) (10,175,212) (10,582,220)
Actual FY13 AFR, higher voluntary termination GFOE adjust 0 (6,460,699) (6,701,037) (6,969,079)
Actual FY13 AFR, lower redemption of debt principal GFOE adjust 0 3,227,626 3,347,693 3,481,601
Actual FY13 AFR, Lower other GFOE adjustments 0 5,416,530 5,618,025 5,842,746
Change in NEEDS gained or lost in basic funding calculation 0 (37,714,557) (42,522,941) (44,223,859)
Revise system averaging adjustment 0 7,378,868 7,629,422 7,934,599
Higher Student Growth Adjustment 0 2,863,564 2,970,088 3,088,892
Lower Poverty/LEP/Student Growth Corrections 0 5,705,939 5,918,200 6,154,928
All Funds All Funds All Funds All Funds
(continued from prior page) FY2013-14 FY2014-15 FY2015-16 FY2016-17
Higher formula NEEDS stabilization 0 377,519 (637,889) (663,405)
Lower effective Yield from Local Effort Rate 0 46,727,796 43,498,130 45,231,719
Higher Minimum Levy Adjustment 0 (48,613,421) (48,613,421) (48,613,421)
Actual FY13 AFR, higher Other Receipts 0 (4,941,484) (1,372,064) (1,292,738)
Higher Non Equalized Levy Aid Adjustment 0 (1,513,916) (1,513,916) (1,513,916)
All Other 0 (104,576) (84,715) (103,695) __________ __________ __________ __________ Total Change – to NDE Jan 2014 Amount 0 (37,925,010) (43,120,824) (42,728,282)
Jan 2014 NDE Current Law Calculation 906,581,331 899,931,825 993,574,817 1,037,852,000
Prior year adjustment 0 110,322 0 0
LB 725 (LER to $1.00) 0 32,929,695 0 0
LB 276 Medicaid plan, TEEOSA, early intervention act 0 0 0 (1,417,000)
LB 967 TEEOSA, Ed Innovation, early childhood 0 0 600,000 2,300,000 __________ __________ __________ __________ Total Change – 2014 Session 0 33,040,017 600,000 883,000
Sine Die 2014 906,581,331 932,971,842 994,174,817 1,038,735,000
Change - Oct 2013 Joint Meeting 0 (2,329,517) 1,042,297 368,437
Change - NDE Jan 2014 0 (37,925,010) (43,120,824) (42,728,281)
Change – 2014 Session 0 33,040,017 600,000 883,000 __________ __________ __________ __________
Total Change since Sine Die 2013 0 (7,214,510) (41,478,527) (41,476,844)
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Nurturing Healthy Behaviors (Education)
The Legislature included $400,000 of general funds in FY2014-15 for the State Department of
Education to expand the Nurturing Healthy Behaviors program. Currently, about $400,000 of
federal funds are allocated for three programs in the state which provide early childhood
consultation services to children from birth through eight years of age. The funds may be used for
mental health screening, assessment, individualized program plans, staff training, curriculum
development and program evaluation for children in child care centers, preschool programs and
elementary schools. Intent language provides that at least one new program shall be funded in
the third Congressional district with a portion of the new general funds provided in FY15. This
item was originally included in LB 944.
Early Childhood Grant Program (Education)
The enacted budget changes include an additional $3,415,000 of general funds in FY 2014-15 as
aid for the early childhood education grant program. The aid is provided to the State Department
of Education on a one-time basis to provide grants for early childhood programs over a three year
period, from FY2014-15 through FY2016-17. Also included is $95,000 of general funds in each of
the three years for an additional position in the department to provide monitoring and technical
assistance to newly funded early childhood education programs bringing the three year total to
$3.7 million.
In addition, the budget includes a shift of $95,798 from the early childhood grant program to
operating funds to provide additional technical assistance to grantees in FY2013-14 and FY2014-
15.
Microsoft IT Academy Program (Education)
The budget includes $250,000 of general funds in FY2014-15 provided to the State Department of
Education for a pilot project for a Microsoft IT Academy. The department is to select school
districts to participate in the project and evaluate the results of the project. The project shall be
conducted in collaboration with the community colleges and business interests. There is to be
statewide representation in the project with at least two rural school districts selected for
participation.
Water Litigation Funding (Attorney General)
A total of $400,000 in General Funds is provided to the Attorney General for FY2013-14 for
continuation of water litigation issues. This funding will be used for litigation and arbitration
between Nebraska, Kansas, and Colorado over issues arising from the Republican River
Compact and Final Settlement Stipulation. This additional amount along with $350,000
appropriated last session will provide funding for both FY14 and FY15.
Restore Base Funding (State Auditor)
During the 2013 Legislative Session, $176,669 General Funds was vetoed from the Auditors
proposed budget and the amount was not overridden. However, the Legislature subsequently
passed LR384 indicating its intent to restore the funding through the deficit process. With the
passage of LR384 the Auditor has been operating in good faith that the appropriation would be
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restored. The 2014 budget adjustments include restoration of these funds. Without this funding,
the Auditor’s Office would need to reduce staffing by at least 4 positions.
Homestead Exemption (Revenue)
In the 2013 legislative session, funding for homestead exemption reimbursement was estimated
at LB 195 appropriated $71.6 million for FY2013-14 and $74.9 million for FY2014-15. Actual tax
losses certified by the counties for the current fiscal year (FY2013-14) total $65,087,564. This
allows for a $6.5 million reduction in the amount originally estimated for FY2013-14 and provides
for the certified amount plus a small amount for potential revisions since the counties may amend
their requests for homestead funding at any time. Because the FY2013-14 amount was lowered,
this allows for a lowering of the estimated FY20l4-15 amount. It is estimated that the appropriation
for FY2014-15 may be reduced from $74.9 million to $68.9, a reduction of $6.0 million. Note that
the level of homestead exemption is statutorily determined. This reduction simply reflects the
estimated cost of the existing program relative to the original budget estimates and does not
reflect any programmatic changes.
Subsequently two bills enacted in the 2014 Session made several changes to the program. LB986
increases the homestead eligibility income limitations for qualified claimants. LB1087 provides a
100% exemption for a veteran with a honorable or general (under honorable conditions) discharge
who is drawing compensation for a 100% disability and who is not eligible for the existing total
homestead exemption. This provision would also apply to that veteran’s unremarried widow or
widower. The bill also gives a 100% exemption to the unremarried widow or widower of any
honorably discharged (or general discharge under honorable conditions) veteran who died
because of a service-connected disability or whose death on active duty was service connected.
Biennial Budget Following Biennium
Homestead Exemption FY2014-15 FY2015-16 FY2015-16 FY2016-17
Funding enacted in 2013 session 71,600,000 74,900,000 77,147,000 79,461,410 Adjustment to FY14 actual (6,500,000) (6,000,000) (6,000,000) (6,000,000) __________ __________ __________ __________
Subtotal - Prior Law 65,100,000 68,900,000 71,147,000 73,461,410
LB 986 Change homestead exemption income limitations 0 4,621,000 5,468,000 5,601,000 LB 1087 Homestead exemption, disabled veterans 0 0 406,000 416,000 __________ __________ __________ __________
Total per 2014 Session 65,100,000 73,521,000 77,021,000 79,478,410
Reduced Medicaid Match Rate (DHHS)
The current biennial budget enacted last session, was based on a federal medical assistance
percentage (FMAP) of 55.76% rate for federal fiscal year (FFY) 2014 and an estimated FMAP of
54.74% starting October 2014 (FFY2015). It is now known that the FFY2015 FMAP will be
53.27% or 1.47% lower than estimated last session.
The base FMAP is also used in the calculation of the enhanced Children’s Health Insurance
Program (SCHIP) match rate. The current biennial budget enacted last session, was based on an
SCHIP FMAP of 69.03% for FFY2014 and estimated SCHIP FMAP of 68.32% for FFY2015. It is
now known that the FFY2015 FMAP will be 67.29% or 1.03% lower than estimated last session.
Page 47
These lower federal match rates result in a higher state match and additional General Fund
appropriations. The FMAP affects multiple program as shown below.
Program Type FY2013-14 FY2014-15
33 Developmental disability service coordination Oper 0 111,910
344 Childrens Health Insurance (SCHIP) Aid 0 694,600
347 Public Assistance Aid 0 277,331
348 Medicaid Aid 0 13,358,062
354 Child Welfare Aid 0 285,939
365 Mental Health operations Oper 0 51,494
421 Beatrice State Develop Center (BSDC) Oper 0 188,133
424 Developmental disability aid Aid 0 1,951,856 _________ _________
Total GF impact of FMAP change 0 16,921,325
Children’s Health Insurance (SCHIP) ACA MAGI Eligibility Rules (DHHS)
The SCHIP MAGI Conversion beginning on January 1, 2014, includes a 5% FPL disregard on top
of the converted income standard for the CHIP group, thus increasing the number of eligible
children qualifying for coverage. This new group resulted from a clarification by CMS of program
requirements under the ACA. CMS did not publish or rule on the SCHIP portion of the 5% FPL
disregard until 7/15/13. Therefore, the Department did not include any request for these funds in
the FY2013-2015 budget submittal. These funds will be needed to cover the additional enrollees
as coverage for this group is mandatory. SCHIP would be expanded, affecting approximately
3,500 children at a cost of $2,484 per child annually.
The 5% disregard is only applied if a child fails income eligibility. For example, if the child’s MAGI
is 217%, they would be ineligible for CHIP. However, when the 5% MAGI disregard is applied,
their MAGI is now 212% (217% - 5% = 212%) and they are eligible for CHIP under the 5% MAGI
group. Additional costs amount to $1,369,305 Gen Funds and $2,977,695 Fed Funds in FY2013-
14 and $2,775,125 Gen Funds and $5,918,875 Fed Funds in FY2014-15.
Children’s Health Insurance (SCHIP) ACA Section 2101F Population (DHHS)
2101F Separate SCHIP is a temporary program created under Section 2101(f) of the Affordable
Care Act that will run from January, 2014, through December, 2015, and will impact SFY14-
SFY16. This program will cover SCHIP eligibles for one year who no longer qualify for Medicaid
and SCHIP due to the conversion to MAGI methodology. This new group resulted from a
clarification by CMS of program requirements under the ACA therefore, the Department did not
include any request for these funds in the FY2013-2015 budget submittal. These funds will be
needed to cover the additional enrollees as coverage for this group is mandatory. CHIP services
would be continued for an estimated 3,000 children at a cost of $2,484 per child annually.
The converted Marginal Adjusted Gross Income (MAGI) income eligibility for this group is 213%
for CHIP and 194% for pregnant women. If a child is over this income limit they would not qualify,
but this provision provides for an additional year of eligibility. Additional costs amount to $440,134
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Gen Funds and $957,116 Fed Funds in FY2013-14 and $1,665,075 Gen Funds and $3,551,325
Fed Funds in FY2014-15.
State Disabled - Medical (DHHS)
The State Disabled Program (SDP) – Medical provides medical coverage for persons with a
disability that is expected to last longer than six months but shorter than twelve months.
Historically, a look back to the original date of application allowed the State to retroactively
change coding from SDP to Medicaid. Policy review determined this process was not accurate.
Due to DHHS no longer retroactively changing expenses from SDP to Medicaid back to the date
of application, additional state general funds are needed. The State Disabled Program – Medical
has a $3 million General Fund deficit in both FY14 and FY15. In FY14, Program 347 will be able
to assume $900,000 of the increased cost with savings from Aid to Dependent Children
($500,000) and Aged, Blind and Disabled (AABD) Special Rates ($400,000), and a transfer of
$1,357,800 in formerly used Medicaid General Fund match for this population bringing the
remaining deficit in FY14 to $742,200 GF. In FY15 a transfer of $1,401,900 in formerly used
Medicaid General Fund match for this population will be used to offset the deficit bringing the
remaining deficit to $1,598,100 GF.
Finance Shortfall FY2013-14 FY2014-15 2 Yr Total
Reallocate ADC 500,000 0 500,000
Reallocate AABD special rates 400,000 0 400,000
Reallocate Medicaid GF match 1,357,800 1,598,100 2,955,900
Additional Gen Fund Appropriation 742,200 1,598,100 2,340,300 __________ __________ __________
Total State Disabled Medical Shortfall (3,000,000) (3,000,000) (6,000,000)
Revised Program Costs, DHHS Programs (DHHS)
The Governors recommendation included three areas where an evaluation of year to date
expenditures or other factors indicate excess appropriations in those programs. Actual year to
date expenditure experience relates to the programs under Public Assistance, Medicaid, and
administration of the Medicaid RX drug act. The budget as enacted included these base
reductions as shown below.
Program FY2013-14 FY2014-15 2 Yr Total
Medicaid RX Drug Act Admin (Prog 32) (800,000) (800,000) 1,600,000
Public Assistance (Prog 347) 0 (1,500,000) (1,500,000)
Medicaid (Prog 348) 0 (4,622,744) (4,622,744) __________ __________ __________ Base Adjustments, DHHS programs (800,000) (6,922,744) (7,722,744)
Medicaid Part D Clawback Reduction (DHHS)
Mandatory state payments to the federal government to help finance the Medicaid Part D benefit
for individuals eligible for both Medicare and Medicaid, known as dual eligibles has decreased.
The payments are commonly called "clawback" payments. The current appropriation for this
purpose is reduced by $2.8 million in FY2013-14 and $4.8 million in FY2014-15.
Page 49
Reallocate ACA Contingency to Behavioral Health Aid (DHHS)
In the 2013 legislative session, behavioral health aid was reduced by $15 million due to potential
savings due to provisions of the Affordable Care Act (ACA). At the same time, $10 million of
general fund aid was appropriated to a new budget program as a contingency in the event that the
ACA did not result in $10 million of savings in behavioral health services. Behavioral health
providers indicate it is likely that $10 million of savings will not result from the ACA in FY15. The
enacted budget changes shifts that $10 million of General Funds back to Program 38 to provide
aid to behavioral health providers in FY2014-15 and eliminate the contingency Program 46.
Developmental Disability Aid (DHHS)
The midbiennium budget changes include a substantial increase in funding for developmental
disability aid. First, is $2,595,048 General Funds and $2,821,240 federal Medicaid funds to
provide a 2% increase in provider rates for developmental disability providers in FY2014-15. Last
session funds were included to implement a new rate methodology but no general provider rate
increase.
The second item is an additional $4,745,000 General and $5,776,064 Federal (Medicaid) as state
aid to provide services to persons on the developmental disability waiting list in FY2014-15.
Funding is also included to add 9.5 FTE administrative and service coordination staff to assist in
the provision of services to individuals taken off of the waiting list ($255,000 General, $289,000
Federal).
State Ward Permanency Pilot Project (DHHS)
Funding is provided for the State Ward Permanency Pilot Project. The purpose of the pilot project
is to provide developmental disabilities services to state wards in order to provide optimal
habilitative supports and promote permanency. The pilot project would serve state wards who are
eligible for developmental disabilities services but do not qualify for priority status and state wards
who are in need of habilitative supports to achieve permanency. The Project will collect data on
the impact of the services, the number of state wards participating who achieve permanency, the
stability of the placements for these youth and the impact of the support to families before and
after permanency is achieved. The data will be submitted to the Foster Care Review Office for
analysis. The Foster Care Review Office will report to the Health and Human Services Committee
every six months during the length of the project. The total amount appropriated for the project is
$3,000,000 with $972,000 reallocated from Child Welfare Aid; $528,000 additional General Funds
and $1,500,000 from federal Medicaid matching funds.
Rural Health Incentive Funding (DHHS)
An additional $150,000 is provided in FY 15 for the Rural Health Incentive Program. There are
two different incentive programs, a student loan forgiveness program and a loan repayment
program that requires a community match equal to the amount of the state match. Cash funds
equal to the amount of the General Fund appropriation are provided to allow the Rural Health
Advisory Committee the maximum flexibility in deciding the distribution of the funding.
Page 50
Federally Qualified Community Health Centers (DHHS)
The mainline budget adjustment bill includes additional FY2014-15 aid to the six Federally
Qualified Health Centers (FQHC); $250,000 General Funds and $750,000 from the Health Care
Cash Fund in.
Emergency Management Services Aid (DHHS)
An additional $212,000 General Funds is included for aid to emergency management services
(EMS) for training. Prior appropriations equal to this amount were never fully expended on EMS
training. The full appropriation amount is transferred from Program 033 Administration to the
Program 514 Health Aid.
Community Aging Services Aid (DHHS)
General Fund aid community-based aging services is increased by $1 million starting in FY14-15
financed by a reduction in Medicaid General Fund appropriations of a like amount.
LB 690 Aging Nebraskans Task Force (DHHS)
LB690 creates the Aging Nebraskans Task Force to facilitate implementation of a statewide
strategic plan for addressing the needs of Nebraska’s aging population. The task force will report
its recommendations to the Legislature by December 15, 2014 and terminate June 30, 2016,
unless extended by the Legislature.
This bill requires the Department of Health and Human Services (DHHS) to apply for a grant
under State Balancing Incentive Payment Program (BIPP) by September 1, 2014. Under this
program Nebraska would be eligible to receive a 2% increase in federal matching funds to
enhance home and community-based services. The additional enhanced match would be
approximately $3.1 million in FY 15 and $6.2 million in FY 16. The freed up general funds would
generate $5.8 million in FY 15 and $11.6 million in FY 16.
Clients on the home and community-based waiver or those under managed care would not be
eligible under the BIPP grant. DHHS currently provides case management services to clients on
the home and community-based waiver and its assumed case management would be extended to
all clients served under the BIPP grant. HHS estimates there are approximately 4,966 who would
receive case management services. Case management services currently cost $193 per month
per client. The total cost for half of FY 15 would be $5,750,628 ($2,629,187 GF and $3,121,441
FF) and $11,501,256 ($5,528,374 GF and $6,242,882 FF) for a full year in FY 16.
The changes that would be done under the BIPP have the potential to shift services from
institutional care to home and community based care. Further study would need to be done to
determine the extent of the savings that would result from the shift to more home and community-
based services
Resources Development Fund (Natural Resources
A total of $492,793 General Funds appropriated to the Department of Natural Resources for the
Water Funding Task Force in FY2013-14 is lapsed back to the General Fund. This funding
represents the unused portion of the $1,000,000 General Fund appropriation approved under LB
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517A of 2013. This lapsed amount plus an additional $10 million provides a total of $10,492,793
General Funds which is appropriated to the Resources Development Fund in the Department of
Natural Resources in FY2014-15. The additional funding is intended to expedite the cash flow of
approved projects in conjunction with the ongoing $3,140,325 General Fund appropriation. It is
anticipated that the program will not require additional funding after the FY15-17 biennium.
Inmate Per Diem and Medical Costs (Correctional Services)
The budget includes additional funds for the Department of Correctional Services (DCS) related to
increased inmate population and medical costs.
Item FY2013-14 FY2014-15 2 Yr Total
Inmate medical expenses 3,000,000 3,000,000 6,000,000
Inmate per diem expenses 950,000 1,050,000 2,000,000 __________ __________ __________ Total 3,950,000 4,050,000 8,000,000
Increased population and increasing costs for food, clothing, and other inmate-related institutional
items directly impacts the expenses of the Department of Correctional Services (DCS). DCS will
use additional funding for per diem expenses to provide food, clothing, and other basic needs to
the inmate population
The Department of Correctional Services (DCS) continues to experience a significant increase in
medical expenses. DCS estimates FY2014 medical costs of $23.5 million. Actual medical
operating expenses for FY2010 were $15.5 million and for FY2013 they had increased to $19.9
million. The annual average cost per inmate for medical services has continued to increase: in
FY2010 it was $3,412 and by FY2013 it was $4,123. It is estimated to be $4,892 in FY2014.
Medical services that are not available in secure facilities and must be provided in the community
account for almost all of the estimated increase. These are services such as surgery, specialty
visits (cardiac, respiratory, digestive, endocrine and metabolic disease), and emergency services
(including physician emergency services after hours). DCS provides only primary care in the
secure facilities. DCS notes that as the inmate population ages, the need for these services is
expected to rise. DCS has 847 inmates age 50 and older, an increase from 671 (or 26.2%)
approximately one year ago. Older inmates generally require more care than an individual in the
same age group who has not been in prison. DCS is required to provide inmates with the
community standard of medical care.
Prison Capacity Issues (Correctional Services)
Despite a significant increase in the number of parolees in the past two years, the Nebraska
Department of Correctional Services (DCS) has experienced a marked increase in the overall
inmate population at the various correctional facilities in the state which is creating capacity
issues. As of January 31, 2014, the inmate population was 154.90% of design capacity. Last
session funding was provided in FY2013-14 and FY2014-15 for DCS to prepare a program
statement providing for a comprehensive and updated long-range capital construction master plan
for all state correctional facilities. This study will be completed in the fall of 2014.
The Legislature, following the proposals of the Governor, funded the following items that are
intended to address the immediate short-term capacity needs: The Legislature also included
intent language that DCS investigate the feasibility of leasing the former Lancaster County jail
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facility located in Air Park, and whether leasing this facility could be part of the long-term plan for
addressing the overcrowding of current Department facilities
Item FY2013-14 FY2014-15 2 Yr Total
Maximize existing bed space 127,020 762,122 889,142
McCook Work Ethic camp beds 30,348 150,410 180,758
Temporary housing, county jails 723,604 4,226,625 4,950,229 __________ __________ __________ Issue Total 880,972 5,139,157 6,020,129
Maximize Existing Facility Bed Space – DCS currently contracts with the U.S. Marshal Service to
house federal inmates in Nebraska prison facilities. Nebraska houses approximately 20 such
inmates and the cost for these inmates is covered with federal funds. Returning these inmates to
federal custody to reclaim these beds requires an increase in the General Fund appropriation of
$127,020 in FY14 (two months), and $762,122 in FY15 (full year).
Increase Available McCook Work Ethic Camp (WEC) Beds – This item will increase WEC beds to
200. This increase in capacity would be allocated as follows: 40 beds for additional inmates and
12 reserved for probationers. Increasing WEC capacity and inmate count require three additional
staff, at a cost of $30,348 General Funds in FY14 (two months) and $150,410 General Funds in
FY15 (full year).
Manage Facility Capacity Issues – A number of county jail facilities in the state have available
empty beds. In order to temporarily ease current DCS capacity issues, this item provides funding
for DCS to contract with willing counties to house up to 150 Nebraska inmates in county jails. The
net cost to DCS to house 150 inmates at the county level is estimated to require additional
General Fund appropriations of $723,604 in FY2013-14 (two months) and $4,226,625 in FY2014-
15 (full year). This is considered one-time funding with longer term solutions included as part of
the prison population reform under LB 907..
LB 907 Prison Population Reforms (Correctional Services)
LB 907 enacts several programs relating to reduce prison population at both the front end
(probation and reporting centers) and back end (release and reentry).
# Positions (est) GF Appropriation
Item FY14-15 FY15-16 FY14-15 FY15-16
Reporting Centers:
New and Expanded Reporting Centers 35.00 35.00 3,800,000 3,800,000 Mental Health Services -- -- 5,000,000 5,000,000 ____ ____ _________ _________
Subtotal – Reporting Centers 35.00 35.00 8,800,000 8,800,000
Vocational and Life Skills Program
Reentry programming and Treatment Staff 24.0 24.0 1,500,000 1,500,000
Aid for Voc Training Outside DCS Facilities -- -- 3,500,000 3,500,000 ____ ____ _________ _________
Subtotal – Vocational and Life Skills 29.0 29.0 5,000,000 5,000,000
Reentry Plans 5.0 5.0 269,362 252,337
Nebraska Center for Justice Research -- -- 200,000 200,000 ____ ____ _________ _________
Total General Funds 64.0 64.0 14,269,362 14,363,227
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Reporting Centers: LB 907 provides funds for additional Reporting Centers and expands
services at current Reporting Centers. It also expands mental health services at Reporting
Centers.
There are now 7 full reporting centers with one center sharing staff and services: Douglas,
Lancaster, Sarpy (and Otoe), Dakota, Dawson, Buffalo, and Scottsbluff. Each reporting center
consists of the following: Coordinator, Probation Officer Assistant, two Drug Technicians, and
Secretary. In addition, there is usually one or more Specialized Substance Abuse Supervision
(SSAS) Probation Officer, each with a caseload of 24. State General Funds pay for reporting
center staff and cash funds from offender fees pay for services. The county pays for the reporting
center building and ongoing operations cost.
Additional funds in LB 907 will provide for three new SSAS reporting center sites (Hall, Platte and
possibly Madison, Lincoln or Dodge), expansion of SSAS officers in existing sites currently over
capacity, and addition of SSAS officers to a current reporting center without SSAS.
Vocational and Life Skills Program: The bill creates the Vocational and Life Skills Program in
the Department of Correctional Services (DCS), and requires that all inmates receive a reentry
plan when they have served at least 80% of their sentence.
$1.5 million would be used for reentry programming, including behavioral health, inside DCS
facilities. The position of Reentry Program Coordinator is created by this bill. Other staff initially
identified to fulfill the responsibilities of the new Program are a Program Manager, Contract
Monitor (Buyer II), Grant Administrator, and Staff Assistant II. Salary and benefits for these
positions are estimated at $307,250. Capital outlay costs for office furnishings and computer
equipment for the above staff are estimated at $20,000. Operating costs would include office
space (initially planned in Omaha) and a contract for quarterly evaluations to determine the
effectiveness of the projects funded with aid dollars. The estimated total is $300,000. The
remaining amount from the $1.5 million will be used for treatment staff to expand programs such
as Anger Management, Domestic Violence, and Substance Abuse.
$3.5 million per year is for aid that will be used outside DCS facilities for vocational training
provided by community colleges and community-based and non-profit providers. DCS will develop
a grant process for this aid and will monitor and track the funds awarded to ensure programming
is delivered as agreed upon and is meeting the identified needs of inmates and communities.
Reentry Plans: The bill requires that all inmates receive a reentry plan when they have served
at least 80% of their sentence. DCS states that approximately 2,670 inmates were released from
DCS facilities in CY2013. Currently DCS reentry officers complete a written plan for reentry for all
parolees (1,765 in CY2013). In order to provide a written reentry plan for the additional 905
inmates annually who do not currently receive a reentry plan, DCS would need to add three (3)
reentry officers and two (2) social workers. Currently, social workers work with higher needs
inmates preparing for discharge. The need for social work services is typically identified as the
reentry plan is created prior to parole.
Nebraska Justice Reinvestment Working Group: This 16 member working group will be
selected by the Governor, Chief Justice of the state Supreme Court and Speaker of the
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Legislature to assist the Council of State Governments Justice Center in developing potential
legislative solutions for the problems associated with prison overcrowding. The study is to include
a broad range of issues including but not limited to alternatives to incarceration, reentry
programming and transition, prison programming, and recidivism rates. A report is to be
completed by Sept. 1, 2015.
Nebraska Center for Justice Research: The bill would create the Nebraska Center for Justice
Research at the University of Nebraska. The mission of the center shall be to develop and sustain
research capacity internal to the State of Nebraska to assist the Legislature in research,
evaluation, and policymaking to reduce recidivism, promote the use of evidence-based practices
in corrections, and improve public safety. The University estimates staff and related costs for the
Center at $200,000 per year.
Legal Education for Public Service and Rural Practice Loan Repayment Act: LB 907
revised the existing Legal Education for Public Service Loan Repayment Act, to include support
for attorneys who work in less-populated rural areas of Nebraska (rural legal profession shortage
areas). LB907A transfers $500,000 from the General Fund to the Legal Education for Public
Service and Rural Practice Loan Repayment Assistance Fund in FY2014-15 for this expanded
use.
Pediatric Cancer Research (University of Nebraska)
The budget includes $1.8 million for pediatric cancer research at the University of Nebraska
Medical Center (UNMC). Currently, Nebraska ranks third in the nation per population in the
number of cases of childhood cancer. Funding would allow UNMC to hire two new researchers to
develop new therapies and treatments. State funding will allow UNMC to leverage additional
federal and private funding.
Relocation of Leased Space (Historical Society)
Funding of $691,686 in FY2013-14 and $485,086 in FY2014-15 is provided for the Nebraska
State Historical Society to acquire new leased space. The funding will allow NSHS to consolidate
three locations (archeology lab, the archeology collection, and the historic records currently stored
at the K St. facility) into a single space. The Experian building has become available as new
leased space at a rate of $10/sf for 20,000 sf. This will be a long-term lease (10+ years). Funds
provided would be used for lease payment, purchase space saving storage shelving, and moving
costs. The funding provides a long-term solution that will address space needs for years to come.
Current space is inadequate to house historical artifacts, papers, and collections.
Page 55
Total Appropriations
All Funds
Page 56
Total Appropriations – All Funds
Table 17 shows the total appropriation from all fund sources as enacted in the 2013 legislative
session with budget adjustments made in the 2014 session.
While this report provides a narrative description of the major changes enacted during the 2014
Session, the reader should refer to the 2013 Biennial Budget Report for a more detailed
description of the budget actions taken in that session for the initial enactment of the FY14 / FY15
biennial budget.
Table 17 Total Appropriations - All Funds
FY2012-13 General Cash Federal Rev/Other Total
Adjusted Per 2012 Session 3,632,423,755 1,854,087,842 2,676,111,718 843,560,595 9,006,183,910
2013 Session Deficits (13,923,316) (2,079,313) (3,796,263) (708,621) (20,507,513)2013 Session State Claims 825,270 1,200,000 0 150,000 2,175,2702013 Session "A" bills 1,000,000 0 0 0 1,000,000
____________ ____________ ____________ _________________________Final Appropriation per 2013 Session 3,620,325,709 1,853,208,529 2,672,315,455 843,001,974 8,988,851,667
FY2013-14 General Cash Federal Rev/Other Total
Total Per 2013 Session 3,838,168,907 2,054,629,664 2,875,826,694 816,730,442 9,585,355,707
2014 Session-Committee Proposed (2,075,683) 11,298,815 20,682,149 6,350,000 36,255,281 2014 Session State Claims 1,467,753 0 0 2,787,803 4,255,556 2014 Session Floor Actions 0 2,400,000 0 0 2,400,000 2014 Session Vetoes (7,730,467) (2,533,803) 0 0 (10,264,270) 2014 Session Overrides 7,727,467 110,198 0 0 7,837,665 2014 Session "A" bills 3,681,544 1,628,000 0 0 5,309,544____________ ____________ ____________ _________________________
2014 Deficits 3,070,614 12,903,210 20,682,149 9,137,803 45,793,776
Final Total - 2014 Session 3,841,239,521 2,067,532,874 2,896,508,843 825,868,245 9,631,149,483
Change over prior year (without deficits) Dollar 205,745,152 200,541,822 199,714,976 (26,830,153) 579,171,797 Percent 5.7% 10.8% 7.5% -3.2% 6.4%
FY2014-15 General Cash Federal Rev/Other Total
Total Per 2013 Session 4,040,892,665 2,044,309,317 2,892,865,676 764,788,062 9,742,855,720
2014 Session-Committee Proposed 2,102,822 64,957,520 3,295,456 22,351,900 92,707,698 2014 Session Floor Actions 110,322 0 0 0 110,322 2014 Session Vetoes (17,200,812) (18,257,520) (4,321,240) (14,201,900) (53,981,472) 2014 Session Overrides 17,162,476 17,696,556 4,321,240 14,201,900 53,382,172 2014 Session "A" bills 62,758,057 28,664,313 17,357,217 180,594 108,960,181 Post 2014 Session 0 0 0 0 0
____________ ____________ ____________ _________________________ 2014 Session Midbiennium Actions 64,932,865 93,060,869 20,652,673 22,532,494 201,178,901
Total Per 2014 Session 4,105,825,530 2,137,370,186 2,913,518,349 787,320,556 9,944,034,621
Change over prior year (without deficits) Dollar 267,656,623 82,740,522 37,691,655 (29,409,886) 358,678,914 Percent 7.0% 4.0% 1.3% -3.6% 3.7%
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Table 18 Listing of 2014 Session “A” Bills
Approp Approp. Estimated Estimated Description Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
LB 191 Nebr Job Creation and Mainstreet Revitalization Act General 0 395,929 122,100 122,100 LB 191 Nebr Job Creation and Mainstreet Revitalization Act Cash 0 0 153,909 153,909
LB 254 Autism insurance coverage, amino acid-formulas General 0 622,500 1,574,467 1,574,467
LB 276 Medicaid plan, TEEOSA, early intervention act General 0 42,746 42,746 1,825,746 LB 276 Medicaid plan, TEEOSA, early intervention act Federal 0 2,742,746 13,542,746 16,242,746
LB 359 Eligibility redeterminations, child care subsidy General 0 370,152 787,968 787,968
LB 371 Transparency in Government Procurement Act Revolving 0 145,800 0 0
LB 383 Provide for Nebraska Armed Forces Pride Plates Cash 0 0 55,138 55,138
LB 438 Priority schools, intervention teams General 81,544 776,832 776,832 776,832
LB 464 Juveniles, court jurisdiction, indictment procedures General 0 5,426,692 8,649,784 17,751,013 LB 464 Juveniles, court jurisdiction, indictment procedures Cash 250,000 250,000 250,000 250,000 LB 464 Juveniles, court jurisdiction, indictment procedures Federal 0 (235,000) (235,000) (235,000)
LB 560 Enforcement, certain labor and employment acts General 0 154,445 155,731 155,731
LB 660 Extend pilot project, case management contract General 0 75,000 0 0
LB 661 Voter registration, website and use of DMV records General 0 50,000 0 0 LB 661 Voter registration, website and use of DMV records Cash 0 104,787 45,332 45,332
LB 687 Change application procedures, real estate licenses Cash 0 31,920 33,060 33,060
LB 690 Aging Nebraskans Task Force General 0 2,857,248 5,335,568 5,335,568 LB 690 Aging Nebraskans Task Force Federal 0 12,269,579 17,917,348 17,917,348
LB 725 Change TEEOSA provisions, local effort rate General 0 32,929,695 0 0
LB 744 Nebraska Sesquicentennial Commission General 0 94,000 94,000 94,000
LB 751 Nebraska Benefit Corporation Act Cash 0 10,640 0 0
LB 814 Sales tax on watercraft / ATV to Game & Parks General 0 44,485 0 0 LB 814 Sales tax on watercraft / ATV to Game & Parks Cash 0 3,149,883 3,709,383 3,709,383
LB 853 Changes, Young Adult Voluntary Services & Support General 0 550,968 685,207 685,207 LB 853 Changes, Young Adult Voluntary Services & Support Federal 0 781,893 918,831 918,831
LB 867 Sales tax exemptions, sports arena throwback General 0 52,700 45,200 45,200 LB 867 Sales tax exemptions, sports arena throwback Cash 1,378,000 1,265,000 0 0
LB 901 Psychology internship, Behavioral Health Ed Center General 0 374,000 417,750 578,875
LB 907 Supervised release, reentry, Voc & Life Skills General 0 14,269,362 14,252,337 14,252,337 LB 907 Supervised release, reentry, Voc & Life Skills Cash 0 152,500 151,500 151,500
LB 920 Adopt the Public Guardianship Act General 0 886,687 1,504,821 1,504,821
LB 923 Training, suicide awareness and prevention General 0 142,000 142,000 142,000
LB 941 Provide for a dairy growth study Cash 0 32,000 0 0
LB 961 Firefighting compact, workers' and short term comp Federal 0 1,797,999 1,576,853 1,576,853
LB 967 TEEOSA, Ed Innovation, early childhood General 0 0 600,000 2,300,000 LB 967 TEEOSA, Ed Innovation, early childhood Cash 0 1,540,227 2,049,727 2,049,727
LB 974 DHHS budgeting and strategic planning, pre-audits Revolving 0 34,794 32,989 32,989
LB 983 Changes, commercial drivers license, learners permit Cash 0 494,968 594,713 594,713
LB 986 Change homestead exemption income limitations General 0 4,621,000 5,468,000 5,601,000
LB 987 Index income tax brackets, SS exemption General 0 176,966 44,338 44,338
LB 994 Change vital statistics fees General 0 500,000 0 0 LB 994 Change vital statistics fees Cash 0 487,484 503,462 503,462
LB 999 Planning-Hastings Correctional Behavioral Health General 0 (2,897,000) 2,897,000 0
LB 1016 Purchase a state aircraft, authorization General 3,600,000 0 0 0
LB 1042 Changes, school retirement and PERB duties Cash 0 94,904 89,904 89,904
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Approp. Approp. Estimated Estimated (Continued) Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
LB 1087 Homestead exemption, disabled veterans General 0 0 406,000 416,000
LB 1098 Membership / duties, Natural Resources Comm. General 0 41,650 18,700 18,700 LB 1098 Membership / duties, Natural Resources Comm. Cash 0 21,000,000 11,000,000 11,000,000
LB 1114 Change termination date, econ develop programs Cash 0 50,000 0 0
LB 1115 Power Review Board, study and state policy General 0 200,000 0 0 ________ _________ ________ ________
General 3,681,544 62,758,057 44,020,549 54,011,903 Cash 1,628,000 28,664,313 18,636,128 18,636,128 Federal 0 17,357,217 33,720,778 36,420,778 Revolving 0 180,594 32,989 32,989 NCCF 0 0 0 0
Total 5,309,544 108,960,181 96,410,444 109,101,798
While a complete listing of all items is contained in Appendix A, the major cash, federal, and
revolving/NCCF items are shown in Table 19 below. With respect to cash and federal funds, most
of the items listed are related to a General Fund issue described in the General Fund section of
this report. For the largest cash fund and NCCF items a narrative description follows the table.
Table 19 Significant Non-General Fund Budget Adjustments – 2014 Session
Major Items - Cash Funds FY2013-14 FY2014-15 2 Yr Total
Revenue-Property Tax Credit Cash Fund 0 25,000,000 25,000,000
LB 1098 Water Sustainability Fund appropriation. 0 21,000,000 21,000,000
Game & Parks - Improvement and Maintenance Fund 0 17,500,000 17,500,000
DED-Job Training Cash Fund 0 10,000,000 10,000,000
DHHS-Upper Payment limit. DHHS and UNMC 0 7,700,000 7,700,000
Game & Parks-Environmental Trust Grant Funding Increase 4,250,000 2,000,000 6,250,000
LB 814 Sales tax on watercraft / ATV to Game & Parks 0 3,149,883 3,149,883
Treasurer-Convention Center and Sports Arena Support Funds 2,820,180 0 2,820,180
Labor-Dept. of Labor Retirement Plan Settlement 2,773,000 0 2,773,000
LB 867 Sales tax exemptions, sports arena throwback payments 1,378,000 1,265,000 2,643,000
LB 967 TEEOSA, Ed Innovation, early childhood 0 1,530,000 1,530,000
Tourism Commission-Increased cash fund expenditure authority 350,000 750,000 1,100,000
Education-Additional Authority for Excellence in Teaching 400,000 400,000 800,000
DHHS-Increase funding, community health centers 0 750,000 750,000
Revenue-Gamblers Assistance (several items) 360,198 260,428 620,626
LB 983 Changes, commercial driver's licenses and learner's permits 0 494,968 494,968
LB 994 Change vital statistics fees 0 487,484 487,484
Banking-Indemnification Claims litigation expense assessment 200,000 0 200,000
Motor Vehicles-Replace Vehicle, Title, Registration System 0 271,128 271,128
State Patrol-Medical cost payment, Regional West Medical Center 203,889 0 203,889
All Other 167,943 501,978 669,921 __________ __________ __________
TOTAL CASH FUNDS 12,903,210 93,060,869 105,964,079
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Major Items - Federal Funds FY2013-14 FY2014-15 2 Yr Total
Labor-Dept. of Labor Retirement Plan Settlement 19,189,538 0 19,189,538
LB 690 Aging Nebraskans Task Force 0 12,269,579 12,269,579
DHHS-Upper Payment limit. DHHS and UNMC 0 9,200,000 9,200,000
DHHS-MAGI Eligibility Rules Under ACA (SCHIP) 2,977,695 5,918,875 8,896,570
DHHS-Increase funding, waiting list - developmental disability aid 0 5,776,064 5,776,064
DHHS-ACA Section 2101F Population (SCHIP) 957,116 3,551,325 4,508,441
DHHS-2% increase in provider rates - developmental disability aid 0 2,821,240 2,821,240
LB 276 Medicaid plan, TEEOSA, early intervention act 0 2,700,000 2,700,000
LB 961 Firefighting compact, workers' comp, short term comp 0 1,797,999 1,797,999
DHHS-State Ward Permanency Pilot project (LB 936) 0 1,500,000 1,500,000
DHHS-Lower 2013 FMAP 0 (16,919,325) (16,919,325)
DHHS-State Disabled - Medical (1,642,200) (1,598,100) (3,240,300)
DHHS-Base Adjustment, Medicaid 0 (5,269,710) (5,269,710)
DHHS-Base Adjustment, Medicaid RX Drug Act Admin. (800,000) (800,000) (1,600,000)
DHHS-Reduce Medicaid, shift to community aging services (LB689) 0 (1,173,913) (1,173,913)
All Other 0 878,639 878,639 __________ __________ __________
TOTAL FEDERAL FUNDS 20,682,149 20,652,673 41,334,822
Major Items – NCCF / Revolving FY2013-14 FY2014-15 2 Yr Total
DAS-IMS Increased Spending Authority 6,000,000 6,500,000 12,500,000
DAS-State Capitol HVAC system replacement (NCCF) 0 11,701,900 11,701,900
DAS-State Claims (included in Claims Bill) 2,787,803 0 2,787,803
DAS-State Capitol courtyard fountains (NCCF) 0 2,500,000 2,500,000
DCS-Infrastructure and maintenance (NCCF) 0 1,500,000 1,500,000
All Other (Revolving) 350,000 330,594 680,594 __________ __________ __________
TOTAL NCCF / REVOLVING FUNDS 9,137,803 22,532,494 31,670,297
Convention Center and Sports Arena Support Funds (Treasurer)
The Convention Center Facility Financing Assistance Act (as amended by LB551-2007) provides
that sales tax revenue collected by retailers and operators doing business at an approved
convention and meeting center facility, sports arena facility, or associated hotel be allocated to the
Convention Center Support Fund. Of this amount, 70% goes back to the relevant political
subdivision and 30% goes to the Local Civic, Cultural, and Convention Center Financing Fund. A
total of $4,028,827 was certified to be credited to the Convention Center Support Fund of which
$2,580,939 is remitted back to Omaha, $239,241 is remitted back to Ralston, and $1,208,649
transferred to the Local Civic, Cultural, and Convention Center Financing Fund.
LB 867 provided that determination, certification and subsequent remittance of monies from
Sports Arena Facility Support Fund be done on a quarterly rather than annual basis. While not
changing the overall amount received under the current law over the life of the project, the bill
does create an initial increase in cash flow of the first two years amounting to $1,378,000 in FY13-
14 and $1,265,000 in FY14-15.
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Property Tax Credit Cash Fund (Revenue)
Enacted in 2007, under this program transfers are made to the Property Tax Credit Cash Fund at
the discretion of the Legislature. Based on the amount of funds available, monies are then
allocated to counties by the ratio of the real property valuation in the county to the real property
valuation in the state. Counties then allocate funds as credit to each tax payer again based on
their proportionate value. The FY14/FY15 originally enacted budget provides for $115 million of
credits each year financed by a combination of General Fund transfers ($110 million in FY2012-
13 and $113 million in FY2013-14 and FY2014-15) and interest that will be earned on the fund
balance from the time of transfer to the time of reimbursement payments to the counties, and
credits calculated but unpaid relating to properties receiving homestead exemptions.
The 2014 budget adjustments include increasing the credit amount by $25 million from $115
million to $140 million. This would be financed with a transfer from the General Fund to the
Property Tax Credit Cash Fund with an accompanying cash fund appropriation. The $25 million
increase would equate to a 3.3% annual increase applied to the first full year in 2008. While this
percent increase is under the 5.9% average growth in property valuation, it exceeds the 2.5%
average growth in the General fund budget since 2008.
The following table shows the amount of credit by tax year with the 2014 amount estimated at
both the $115 million level and $140 million level. In both cases, 2014 valuation is estimated at a
8.4% increase which is the estimate used for calculation of TEEOSA aid for FY2015-16.
State Valuations Credit Per
Tax Year Total Credit (Real Property Only) $100,000 Value
2007 $105,000,000 126,173,249,573 $83.22
2008 $115,000,000 133,526,060,086 $86.13
2009 $115,000,000 139,872,647,990 $82.22
2010 $115,000,000 145,728,785,008 $78.91
2011 $115,000,000 152,707,187,248 $75.31
2012 $115,000,000 160,846,501,888 $71.50
2013 $115,000,000 174,325,264,970 $65.97
2014 Projected
No increase $115,000,000 188,898,857,121 $60.88
With $25 million $140,000,000 188,898,857,121 $74.11
Retirement Plan Settlement (Labor)
The Department of Labor requested an increase in Reed Act appropriations to fund a proposed
settlement agreement related to the class action lawsuits brought in 2010 by employees and
retirees who are members of the Department of Labor Retirement Plan. This plan was
established in 1961 and closed to new members in 1984 in response to federal regulatory
changes. The U.S. Dept. of Labor agreed to subsidize the plan through a supplemental
appropriation process until such time as the retirement plan was fully-funded. The USDOL
considered continued employee contributions to be a condition of its agreement to subsidize the
unfunded retirement plan liability. In 1994, the then Commissioner of Labor agreed to an
employee committee's recommendation to cease all employee and employer contributions to the
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retirement plan because the plan was believed then to be fully-funded. This triggered the end of
federal subsidization of the retirement plan and set the stage for the retirement plan's future
funding problems and the resultant lawsuits. Total funding for the settlement amounts to
$2,773,000 cash funds and $19,189,538 federal funds.
Replace the Vehicle Title Registration System (Motor Vehicles)
The budget includes establishment of a new Vehicle Title Registration System Replacement and
Maintenance Cash Fund to be administered by the Department of Motor Vehicles (DMV). LB 906
includes language to create the cash fund and to transfer $12.5 million from the DMV Cash Fund
to the newly created fund. The fund shall be used by the department to pay for costs associated
with the acquisition, implementation, maintenance and support, upgrades and replacement of the
vehicle titling and registration computer system. An appropriation of $271,128 of cash funds is
made for FY2014-15 in LB 905 to identify a replacement vehicle title registration system,
associated costs and financing options. DMV is required to report to the Legislature regarding the
use of the funds and progress made in identifying a new system on or before July 31, 2015. This
item was originally included in LB 738.
Health Care Cash Fund Transfer (DHHS)
An additional $1 million per year is transferred into the Health Care Cash Fund beginning in FY 15
to reflect the increase of $750,000 for the Federally Qualified Health Centers and to conform the
transfer amount to the appropriation amount.
Upper Payment Limit. DHHS and UNMC (DHHS)
The Department of Health and Human Services (HHS) and the University of Nebraska Medical
Center (UNMC) have designed a process, allowable by the federal Centers for Medicare and
Medicaid and similar to others that are in place in Nebraska, that allows certain revenues from
UNMC to be transferred to DHHS; the transferred revenues will be used to as a match for
additional Medicaid funds. The cash and federal funds together will then be paid to UNMC. In
Program 348 – Medicaid, the cash fund authority is increased by $7.7 million and the federal fund
estimated by $9.2 million in FY 15 to reflect the additional revenue and expenditures.
Water Sustainability Fund (Natural Resources)
One of the mainline budget bills, LB906, included creation of the Water Sustainability Fund in the
Department of Natural Resources. Fund creation language includes legislative intent that
$21,000,000 General Funds be transferred to the Water Sustainability Fund in FY2014-15 and
that $11,000,000 General Funds be transferred to the Water Sustainability Fund in each fiscal
year beginning in FY2015-16. LB 906 includes a $21,000,000 transfer from the General Fund to
the Water Sustainability Fund. Of this transfer, $10,000,000 is considered a one-time item and is
covered by a like transfer from the Cash Reserve Fund to the General Fund.
The fund would be used in accordance with guidelines established in LB 1098, and for the
administrative costs of the Department of Natural Resources. While the mainline bills created the
fund and transferred monies to the fund, the actual appropriation that will allow the funds to be
expended would be carried out via LB 1098A.
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Environmental Trust Grant Fund (Game and Parks)
The Nebraska Environmental Trust Fund was established for the purpose of conserving,
enhancing, and restoring the natural physical and biological environment in Nebraska using
money from the operation of lottery games. The Nebraska Environmental Trust Board is
responsible for allocating available lottery funds to eligible projects. Due to an increase in lottery
funds the Board requested an increase in their cash fund appropriation in order to give them the
authority to use this money for grant projects. The increase in cash fund spending authority
amounted to $4,250,000 in FY13-14 and $2,000,000 in FY14-15.
Job Training Funding (Economic Development)
The budget adjustments includes the transfer of $10,000,000 from the Cash Reserve Fund
(through the General Fund) to the Job Training Cash Fund in the Department of Economic
Development in FY2014-15. This fund is used to provide employee training assistance to
businesses that maintain, expand and diversify the state’s economic base and in the process,
retain and create quality jobs for Nebraska residents. Because the existing balance of the Job
Training Cash Fund is committed to qualified projects, additional funding is required to allow the
Department the flexibility to offer job training grants to companies seeking to locate or expand
operations in the state. A corresponding $10,000,000 cash fund appropriation increase in
FY2014-15 will allow the Department of Economic Development to expend the additional funds as
needed.
Game &Parks Improvement / Maintenance Fund (Construction)
In the 2014 there were three bills assigned to the Appropriation Committee’s relating to
improvement and maintenance of Game and Parks facilities. The provisions of these three bills
were incorporated into the mainline budget bill by providing a $15 million transfer from the Cash
Reserve Fund (through the General Fund) and a $2.5 million transfer from the State Recreation
Road Fund to the Commission for deferred maintenance and improvement projects at state parks.
This will accommodate twelve new replacement cabins and a new aquatic feature to replace the
pool at Ponca State Park, deferred maintenance and improvements at Arbor Lodge State
Historical Park that will facilitate a local partner assuming operation and maintenance
responsibility, and making headway on the $44 million worth of statewide deferred maintenance
and ADA needs identified by the Commission.
The Legislature also enacted LB814 which earmarks sales and use tax from the sale or lease of
motorboats, personal watercraft, all-terrain vehicles and utility-type vehicles (roughly $3.5 million)
for the repair, maintenance, and improvement of Game and Park’s infrastructure.
Correctional Services Infrastructure & Maintenance (Construction)
Over the years, the 309 Task Force has provided the Department of Correctional Services (DCS)
with significant funding for deferred repair, ADA, fire/life safety, and energy conservation projects.
DCS was notified by the 309 Task Force that their strategy for the remainder of the fiscal year
would be to consider only emergency requests for DCS, due to their thin financial resources. The
Governor recommended an appropriation from the Nebraska Capital Construction Fund (NCCF)
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of $1,500,000 in FY2014-15 to a separate capital construction budget program to provide funding
for high priority infrastructure maintenance and repair projects. The enacted budget includes this
funding.
State Capitol Courtyard Fountains (Construction)
The 2014 mid-biennium budget adjustments include $2,500,000 from the Nebraska Capital
Construction Fund for installation of fountains to be located in each of the four Nebraska State
Capitol courtyards consistent with the original design of the building. The funding will also
accommodate infrastructural improvements to support operation and maintenance of the
fountains as well as associated courtyard landscape restoration.
State Capitol HVAC Systems Replacement (Construction)
In response to a directive contained in LB198 [2013], the Office of the Nebraska Capitol
Commission updated the Nebraska State Capitol HVAC Master Plan which was originally
compiled in 2007. The Master Plan Amendment, dated September 20, 2013, provides an
analysis of existing Capitol heating, ventilating, and air conditioning (HVAC) systems, the majority
of which date to a 1964 systems renovation. In addition, the Master Plan Amendment
recommends a seven-phase, 10-year project to renovate the existing Capitol HVAC systems and
complete associated infrastructure, fire protection, life safety and architectural improvements.
Consistent with cost and cash flow estimates contained in the Master Plan Amendment, the
budget includes funding to accommodate finalization of engineering and architectural planning
and to initiate and complete the project over ten fiscal years. A FY2014-15 appropriation of
$11,701,900 from the Nebraska Capital Construction Fund (NCCF) covers the first three years of
the project. The source of the NCCF monies is a transfer from the Cash Reserve Fund.
Fiscal Yr Amount Fund
2014-15 2,306,215
2015-16 2,306,215
2016-17 7,089,470 __________
Subtotal 11,701,900 NCCF
2017-18 9,529,333 General
2018-19 8,727,526 General
2019-20 7,994,885 General
2020-21 8,755,725 General
2021-22 11,185,556 General
2022-23 11,020,750 General
2023-24 8,851,425 General __________ Total 77,767,100
Page 64
Appendix A
Detailed Listing of All Budget Adjustments
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
#03-Legislative Council
126 LB 660 Extend pilot project, case management contract Gen 0 75,000 0 0 501 Midwest Interstate Passenger Rail Compact dues (LB 891) Gen 45,000 15,000 15,000 15,000
504 Additional staff, Office of Inspector General-Child Welfare Gen 0 152,105 139,588 139,588
#05-Supreme Court
52 County Court employee salaries (Flat amount to 1%) Gen 0 8,273 8,273 8,273 52 PSL Court Employee Compensation ($527,796) PSL 0 YES YES YES 52 Accumulated savings to pay for court employee salary increase Gen 0 YES YES YES 52 LB 464 Juveniles, court jurisdiction, indictment procedures Gen 0 450,000 450,000 450,000 52 LB 464 Juveniles, court jurisdiction, indictment procedures Fed 0 (235,000) (235,000) (235,000) 52 LB 920 Adopt the Public Guardianship Act Gen 0 886,687 1,504,821 1,504,821
67 Probation officer reclassification Gen 0 260,156 260,156 260,156 67 PSL Court Employee Compensation ($952,524) PSL 0 YES YES YES
420 Probation officer reclassification Gen 0 19,112 19,112 19,112
435 Probation officer reclassification Gen 0 3,415 3,415 3,415 435 LB 464 Juveniles, court jurisdiction, indictment procedures Gen 0 5,167,942 8,138,315 17,239,544 435 LB 907 Supervised release, reentry probation, Voc & Life Skills Gen 0 8,800,000 8,800,000 8,800,000
436 Shortfall, juvenile probation costs under LB561 Gen 7,400,000 0 0 0
570 PSL Court Employee Compensation ($19,680) PSL 0 YES YES YES
#10-State Auditor
506 Restore Appropriations Gen 176,669 176,669 176,669 176,669
#11-Attorney General
496 Deficit request, water litigation Gen 400,000 0 0 0
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Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
#12-State Treasurer
663 Sports Arena Support Fund Cash 239,241 0 0 0
663 LB 867 Sales tax exemptions, sports arena throwback payments Cash 1,378,000 1,265,000 0 0
665 Convention Center Support Fund Cash 2,580,939 0 0 0
#13-Dept of Education
25 Education Specialist III for LEP/Poverty Plans Gen 0 93,532 93,532 93,532
25 Early Childhood grant, shift aid to technical assistance Gen 95,798 95,798 95,798 95,798
25 Early Childhood grant, technical assistance for increased funds Gen 0 95,000 95,000 95,000
25 Continued funding, E-Scholar data warehouse Gen 0 100,000 100,000 100,000
25 Microsoft IT academy program and certification Gen 0 250,000 250,000 250,000
25 LB 438 Priority schools, intervention teams Gen 81,544 776,832 776,832 776,832
25 LB 464 Juveniles, court jurisdiction, indictment procedures Gen 0 6,216 6,402 6,402
25 LB 923 Training, suicide awareness and prevention Gen 0 142,000 142,000 142,000
158 School Breakfast Program Gen 94,581 0 0 0
158 Early Childhood grant, shift aid to technical assistance Gen (95,798) (95,798) (95,798) (95,798)
158 TEEOSA state aid, to NDE calculated per current law Gen 0 (40,144,205) (42,078,527) (42,359,845)
158 Nurturing Healthy Behaviors prog, early childhood (LB 944) Gen 0 400,000 400,000 400,000
158 Early Childhood grant program, one-time funds Gen 0 3,415,000 0 0
158 LB 276 Medicaid plan, TEEOSA, early intervention act Gen 0 0 0 (1,417,000)
158 LB 725 Change TEEOSA provisions, local effort rate Gen 0 32,929,695 0 0
158 LB 967 TEEOSA, Ed Innovation, early childhood Gen 0 0 600,000 2,300,000
161 LB 967 TEEOSA, Ed Innovation, early childhood Cash 0 1,530,000 2,039,500 2,039,500
161 Additional Authority for Excellence in Teaching Cash 400,000 400,000 400,000 400,000
614 Professional Practices Commission Personal Service Cash 1,381 0 0 0
614 Professional Practices Comm. Retirement Payout Cash 38,000 0 0 0
Page 66
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
#16-Dept of Revenue
13 Leave payout, Tax Commissioner ($16,500) PSL YES 0 0 0
102 LB 191 Nebr Job Creation and Mainstreet Revitalization Act Gen 0 241,244 122,100 122,100
102 LB 814 Sales tax on watercraft / ATV to Game & Parks Gen 0 44,485 0 0
102 LB 867 Sales tax exemptions, sports arena throwback payments Gen 0 52,700 45,200 45,200
102 LB 987 Index income tax brackets, SS exemption Gen 0 176,966 44,338 44,338
108 Homestead Exemption (to current law) Gen (6,500,000) (6,000,000) (6,000,000) (6,000,000)
108 LB 986 Change homestead exemption income limitations Gen 0 4,621,000 5,468,000 5,601,000
108 LB 1087 Homestead exemption, disabled veterans Gen 0 0 406,000 416,000
132 Property Tax Credit Cash Fund Cash 0 25,000,000 25,000,000 25,000,000
164 Gamblers Assistance - Data Collection System Cash 100,000 0 0 0
164 Gamblers Assistance - Admin assistant II reclassification Cash 10,198 10,428 10,428 10,428
164 Gamblers Assistance – correct error through LB 464A Cash 250,000 250,000 250,000 250,000
#17-Dept of Aeronautics
26 Increase state aid provided to the Civil Air Patrol. (LB666) Cash 0 15,000 15,000 15,000
596 LB 1016 Purchase a state aircraft, authorization Gen 3,600,000 0 0 0
#18-Dept of Agriculture
78 Eliminate duplicate funding, climate study Gen (44,746) 0 0 0
78 LB 941 Provide for a dairy growth study Cash 0 32,000 0 0
#19-Dept of Banking
66 Indemnification Claims litigation expense assessment Cash 200,000 0 0 0
Page 67
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
#23-Dept of Labor
31 Dept. of Labor Retirement Plan Settlement Cash 2,773,000 0 0 0
31 Dept. of Labor Retirement Plan Settlement Fed 19,189,538 0 0 0
31 LB 961 Firefighting compact, workers' comp, short term comp Fed 0 1,797,999 1,576,853 1,576,853
194 LB 560 Enforcement, certain labor and employment acts Gen 0 154,445 155,731 155,731
#24-Dept of Motor Vehicles
70 Replacement of the Vehicle, Title, Registration System (LB 738) Cash 0 271,128 1,167,550 23,290,194
70 LB 383 Provide for Nebraska Armed Forces Pride Plates Cash 0 0 55,138 55,138
70 LB 661 Voter registration, website and use of DMV records Cash 0 104,787 45,332 45,332
70 LB 983 Changes, commercial driver's licenses and learner's permits Cash 0 494,968 594,713 594,713
#25-DHHS System
32 Base Adjustment, Medicaid RX Drug Act Admin. Gen (800,000) (800,000) (800,000) (800,000) 32 Base Adjustment, Medicaid RX Drug Act Admin. Fed (800,000) (800,000) (800,000) (800,000)
32 LB 994 Change vital statistics fees (FY13 $500,000 GF Lapse Gen 0 0 0 0
33 Lower FFY2015 FMAP - Develop disability service coordination Gen 0 111,910 149,213 149,213 33 Lower FFY2015 FMAP - Develop disability service coordination Fed 0 (111,910) (149,213) (149,213)
33 Behavioral Health Data System Gen 0 0 0 0
33 Vital Records (earmark $300,000 cash) Cash 0 0 0 0
33 Reallocate funding to EMS training (LB 889) Gen 0 (212,000) (212,000) (212,000)
33 Nebr Health Information Initiative, additional one-time funds Cash 0 0 0 0
33 Service coordiation for Increased waiting list funding Gen 0 255,000 255,000 255,000 33 Service coordiation for Increased waiting list funding Fed 0 289,000 289,000 289,000
33 LB 276 Medicaid plan, TEEOSA, early intervention act Gen 0 42,746 42,746 42,746 33 LB 276 Medicaid plan, TEEOSA, early intervention act Fed 0 42,746 42,746 42,746
33 LB 359 Eligibility redeterminations, child care subsidy Gen 0 9,000 0 0
33 LB 690 Aging Nebraskans Task Force Gen 0 228,061 77,194 77,194 33 LB 690 Aging Nebraskans Task Force Fed 0 228,061 77,194 77,194
Page 68
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17 33 LB 853 Changes, Young Adult Voluntary Services & Support Act Gen 0 515,480 384,400 384,400 33 LB 853 Changes, Young Adult Voluntary Services & Support Act Fed 0 609,324 563,400 563,400
33 LB 994 Change vital statistics fees Gen 0 500,000 0 0 33 LB 994 Change vital statistics fees Cash 0 487,484 503,462 503,462
38 Reallocate ACA contingency - behavioral health aid Gen 0 10,000,000 10,000,000 10,000,000
38 LB 901 Psychology internships, Behavioral Health Ed Center Gen 0 100,000 100,000 100,000
46 Reduce ACA behavioral health contingency set aside Gen 0 (10,000,000) (10,000,000) (10,000,000)
175 Increase funding, Rural Health Provider Incentive program Gen 0 150,000 150,000 150,000
250 LB 464 Juveniles, court jurisdiction, indictment procedures Gen 0 252,534 505,067 505,067
344 Lower FFY2015 FMAP - Childrens Health Insurance (SCHIP) Gen 0 694,600 926,133 926,133 344 Lower FFY2015 FMAP - Childrens Health Insurance (SCHIP) Fed 0 (694,600) (926,133) (926,133)
344 ACA Section 2101F Population (SCHIP) Gen 440,134 1,665,075 1,665,075 1,665,075 344 ACA Section 2101F Population (SCHIP) Fed 957,116 3,551,325 3,551,325 3,551,325
344 MAGI Eligibility Rules Under ACA (SCHIP) Gen 1,369,305 2,775,125 2,775,125 2,775,125
344 MAGI Eligibility Rules Under ACA (SCHIP) Fed 2,977,695 5,918,875 5,918,875 5,918,875
347 Lower FFY2015 FMAP - Public Assistance Gen 0 277,331 369,775 369,775 347 Lower FFY2015 FMAP - Public Assistance Fed 0 (277,331) (369,775) (369,775)
347 State Disabled - Medical Gen 2,100,000 3,000,000 3,000,000 3,000,000
347 Base Adjustment, Public Assistance Gen 0 (1,500,000) (1,500,000) (1,500,000)
347 LB 359 Eligibility redeterminations, child care subsidy Gen 0 361,152 787,968 787,968
347 Shortfall, juvenile probation costs under LB561 Gen (5,000,000) 0 0 0
348 Lower FFY2015 FMAP - Medicaid Gen 0 13,358,062 17,810,749 17,810,749 348 Lower FFY2015 FMAP - Medicaid Fed 0 (13,358,062) (17,810,749) (17,810,749) 348 Lower FFY2015 FMAP - Beatrice State Develop Center (BSDC) Fed 0 (188,133) (250,844) (250,844)
348 Lower FFY2015 FMAP - Developmental disability aid Fed 0 (1,951,856) (2,602,475) (2,602,475)
348 State Disabled - Medical Gen (1,357,800) (1,401,900) (1,401,900) (1,401,900)
348 State Disabled - Medical Fed (1,642,200) (1,598,100) (1,598,100) (1,598,100)
348 State Ward Permanency Pilot project (LB 936) Fed 0 1,500,000 1,500,000 1,500,000
Page 69
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17 348 Base Adjustment, Medicaid Gen 0 (4,622,744) (4,622,744) (4,622,744) 348 Base Adjustment, Medicaid Fed 0 (5,269,710) (5,269,710) (5,269,710)
348 Medicare Part D clawback reduction Gen (2,800,000) (4,800,000) (4,800,000) (4,800,000)
348 Reduce Medicaid, shift to community aging services (LB689) Gen 0 (1,000,000) (1,000,000) (1,000,000) 348 Reduce Medicaid, shift to community aging services (LB689) Fed 0 (1,173,913) (1,173,913) (1,173,913)
348 Upper Payment limit. DHHS and UNMC Cash 0 7,700,000 7,700,000 7,700,000 348 Upper Payment limit. DHHS and UNMC Fed 0 9,200,000 9,200,000 9,200,000
348 Shortfall, juvenile probation costs under LB561 Gen (2,400,000) 0 0 0 348 Shortfall, juvenile probation costs under LB561 Cash 0 0 0 0
348 Increase funding, waiting list - developmental disability aid Fed 0 5,776,064 5,776,064 5,776,064
348 2% increase in provider rates - developmental disability aid Fed 0 2,821,240 2,821,240 2,821,240
348 LB 276 Medicaid plan, TEEOSA, early intervention act Gen 0 0 0 3,200,000 348 LB 276 Medicaid plan, TEEOSA, early intervention act Fed 0 2,700,000 13,500,000 16,200,000
348 LB 690 Aging Nebraskans Task Force Gen 0 2,629,187 5,258,374 5,258,374 348 LB 690 Aging Nebraskans Task Force Fed 0 12,041,518 17,840,154 17,840,154
354 Lower FFY2015 FMAP - Child Welfare aid Gen 0 285,939 381,252 381,252 354 Lower FFY2015 FMAP - Child Welfare aid Fed 0 (285,939) (381,252) (381,252)
354 State Ward Permanency Pilot project Gen 0 (972,000) (972,000) (972,000)
354 LB 464 Juveniles, court jurisdiction, indictment procedures Gen 0 (450,000) (450,000) (450,000)
354 LB 853 Changes, Young Adult Voluntary Services & Support Act Gen 0 35,488 300,807 300,807 354 LB 853 Changes, Young Adult Voluntary Services & Support Act Fed 0 172,569 355,431 355,431
365 Lower FFY2015 FMAP - Mental Health operations Gen 0 51,494 68,659 68,659 365 Lower FFY2015 FMAP - Mental Health operations Fed 0 (51,494) (68,659) (68,659)
365 Lincoln Regional Center Kitchen, reallocate operations funds Gen (1,234,444) 0 0 0
421 Lower FFY2015 FMAP - Beatrice State Develop Center (BSDC) Gen 0 188,133 250,844 250,844
424 Lower FFY2015 FMAP - Developmental disability aid Gen 0 1,951,856 2,602,475 2,602,475
424 2% increase in provider rates - developmental disability aid Gen 0 2,595,048 2,595,048 2,595,048
424 State Ward Permanency Pilot project Gen 0 1,500,000 1,500,000 1,500,000
424 Increase funding, waiting list - developmental disability aid Gen 0 4,745,000 4,745,000 4,745,000
Page 70
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
502 Increase funding, community health centers Gen 0 250,000 250,000 250,000 502 Increase funding, community health centers Cash 0 750,000 750,000 750,000
514 Increase funding, Nebraska Advocacy Services Gen 0 85,000 85,000 85,000
514 Increase funding, EMS training Gen 0 212,000 212,000 212,000
514 LB 254 Autism insurance coverage, amino acid-based formulas Gen 0 10,000 10,000 10,000 514 LB 254 Autism insurance coverage, amino acid-based formulas Gen 0 250,000 250,000 250,000
571 Increase funding, community aging services Gen 0 1,000,000 1,000,000 1,000,000
#29-Dept of Natural Resources
313 LB 1098 NRC Membership / Water Sustainability Fund guidelines (oper). Cash 0 134,407 127,007 127,007
313 LB 1098 NRC Membership / Water Sustainability Fund guidelines (aid). Cash 0 20,865,593 10,872,993 10,872,993
334 Repeal the obsolete Water Contingency Cash Fund Cash 0 0 0 0
334 One-time funding, Resources Development Fund Gen 0 10,492,793 0 0
334 Lapse unexpended reappropriation, water interim study ($492,793 GF) Gen 0 0 0 0
334 LB 1098 NRC Membership / Water Sustainability Fund guidelines. Gen 0 41,650 18,700 18,700
#33-Game and Parks Commission
162 Environmental Trust Grant Funding Increase Cash 4,250,000 2,000,000 2,000,000 2,000,000
549 Game & Parks - Improvement and Maintenance Fund (operations) Cash 0 150,000 0 0
#41-Real Estate Commission
77 Retirement of Deputy Director for Enforcement Cash 28,562 0 0 0
77 LB 687 Change application procedures for real estate licenses Cash 0 31,920 33,060 33,060
#46-Dept of Correctional Services
200 Inmate medical expenses Gen 3,000,000 3,000,000 3,000,000 3,000,000
200 Inmate per diem expenses Gen 950,000 1,050,000 1,050,000 1,050,000
200 Inmate capacity issues - maximize existing bed space Gen 127,020 762,122 762,122 762,122
200 Inmate capacity issues - McCook Work Ethic camp beds Gen 30,348 150,410 150,410 150,410
200 Inmate capacity issues - temporary housing, county jails Gen 723,604 4,226,625 0 0
Page 71
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
200 LB 907 Supervised release, reentry probation, Voc & Life Skills Gen 0 269,362 252,337 252,337
214 LB 907 Supervised release, reentry probation, Voc & Life Skills (oper) Gen 0 1,500,000 1,500,000 1,500,000
214 LB 907 Supervised release, reentry probation, Voc & Life Skills (aid) Gen 0 3,500,000 3,500,000 3,500,000
#48-Postsecondary Coordinating Commission
640 Executive Director search costs Gen 10,000 0 0 0
640 Leave payment upon retirement Gen 0 11,000 0 0
690 Additional Nebr Opportunity Grant financial aid funding Gen 0 200,000 200,000 200,000
#51-University of Nebraska
515 Pediatric cancer research Gen 0 1,800,000 0 0
515 LB 254 Autism insurance coverage, amino acid-based formulas Gen 0 362,500 725,000 725,000
515 LB 901 Psychology internships, Behavioral Health Ed Center Gen 0 274,000 317,750 478,875
515 LB 907 Supervised release, reentry probation, Voc & Life Skills Gen 0 200,000 200,000 200,000
#54-Historical Society
553 LB 744 Nebraska Sesquicentennial Commission Gen 0 94,000 94,000 94,000
648 Utilities Gen 10,560 18,715 18,715 18,715
648 Move from K St facility to Experian Building Gen 691,686 485,086 485,086 485,086
648 LB 191 Nebr Job Creation and Mainstreet Revitalization Act Gen 0 154,685 0 0 648 LB 191 Nebr Job Creation and Mainstreet Revitalization Act Cash 0 0 153,909 153,909
#64-State Patrol
100 Medical cost payment, Regional West Medical Center Cash 203,889 0 0 0
#65-Administrative Services
172 IMS Increased Spending Authority Rev 6,000,000 6,500,000 6,500,000 6,500,000
567 LB 371 Transparency in Government Procurement Act Rev 0 145,800 0 0
567 LB 974 DHHS budgeting and strategic planning, pre-audits Rev 0 34,794 32,989 32,989
Page 72
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
592 Agency assessments appropriation authority Rev 350,000 150,000 150,000 150,000
591 State Claims (included in Claims Bill) Gen 1,467,753 0 0 0 593 State Claims (included in Claims Bill) Rev 150,000 0 0 0 594 State Claims (included in Claims Bill) Rev 2,637,803 0 0 0
na LB 254 Autism insurance coverage, amino acid-based formulas Gen 0 0 589,467 589,467
#69-Arts Council
326 Hardware, Software and IT Services Gen 0 12,210 12,210 12,210
326 Accumulated leave retirement pay-out. Gen 0 27,746 0 0
#72-Dept of Economic Development
603 Job Training Cash Fund (LB 1091) Cash 0 10,000,000 0 0
603 LB 1114 Change termination date, economic develop programs Cash 0 50,000 0 0
#74-Power Review Board
72 LB 1115 Power Review Board, study and state policy Gen 0 200,000 0 0
#78-Crime Commission
155 Revise earmark funding for Program 155 Gen 0 50,000 50,000 50,000
155 Revise earmark funding for Program 155 Gen 0 (50,000) (50,000) (50,000)
198 Increase PSL, employee retirement payout - Program 198 PSL YES 0 0 0
202 Crime Victim's Reparations Cash Fund Cash 100,000 0 0 0
#85-Public Employees Retirement Board
41 LB 1042 Changes, school retirement provisions and PERB duties Cash 0 94,904 89,904 89,904
515 Statutory Contribution - School 2% Gen 0 448,519 448,519 448,519
515 Statutory Contribution - OPS service annuity Gen 0 (170,042) (170,042) (170,042)
Page 73
Current Biennium Est for Following Biennium Fund FY2013-14 FY2014-15 FY2015-16 FY2016-17
515 Actuarially required contribution - Judges plan Gen 0 0 0 0
515 Actuarially required contribution - State Patrol plan Gen 0 52,774 52,774 52,774
515 State Patrol Plan ‐ Eliminate need for LB 137 contribution Gen 0 (104,580) (104,580) (104,580)
#91-Nebraska Tourism Commission
618 Increased cash fund expenditure authority Cash 350,000 750,000 750,000 750,000
Capital Construction Projects
900 DHHS - Lincoln Regional Center Kitchen project Gen 350,000 884,444 0 0
900 NETC - Radio transmission replacement project Gen 140,000 140,000 0 0
900 Corrections - Infrastructure and maintenance NCCF 0 1,500,000 0 0
900 DAS - State Capitol HVAC system replacement NCCF 0 11,701,900 0 0
900 DAS - State Capitol courtyard fountains NCCF 0 2,500,000 0 0
900 Game & Parks - Improvement / Maintenance Fund Cash 0 17,350,000 0 0
900 NETC - remove reapprop, completed projects ($21,392) Gen YES 0 0 0 900 NETC - remove reapprop, completed projects ($130,624) Cash YES 0 0 0 900 NETC - remove reapprop, completed projects ($144,145) Fed YES 0 0 0
901 LB 814 Sales tax on watercraft / ATV to Game & Parks Cash 0 3,149,883 3,709,383 3,709,383
919 LB 999 Planning-Hastings Correctional Behavioral Health Gen 0 (3,097,000) 2,897,000 0 930 LB 999 Planning-Hastings Correctional Behavioral Health Gen 0 200,000 0 0
General Funds 3,070,614 64,932,865 28,890,685 38,600,721
Cash Funds 12,903,210 93,060,869 56,579,106 78,701,750
Federal Funds 20,682,149 20,652,673 31,376,459 34,076,459
Nebraska Capital Construction Fund (NCCF) 0 15,701,900 0 0
Revolving Funds 9,137,803 6,830,594 6,682,989 6,682,989
Total 45,793,776 201,178,901 123,529,239 158,061,919
Page 74
Appendix B
General Fund Appropriations by Agency
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (excludes deficits)
Without deficits
Per 2013 Session
2014 Deficits
Revised Per 2014 Session
Per 2013 Session
2014 Changes
Revised Per 2014 Session
FY14 $
Change
FY14 %
Change
FY15 $
Change
FY15 %
Change
#03 Legislative Council Oper 18,070,091 18,429,470 45,000 18,474,470 18,853,434 242,105 19,095,539 359,379 2.0% 666,069 3.6%
#03 Legislative Council Total 18,070,091 18,429,470 45,000 18,474,470 18,853,434 242,105 19,095,539 359,379 2.0% 666,069 3.6%
#05 Supreme Court Aid 0 200,000 0 200,000 200,000 0 200,000 200,000 na 0 0.0%
#05 Supreme Court Oper 84,265,483 107,213,686 7,400,000 114,613,686 133,832,254 15,595,585 149,427,839 22,948,203 27.2% 42,214,153 39.4%
#05 Supreme Court Total 84,265,483 107,413,686 7,400,000 114,813,686 134,032,254 15,595,585 149,627,839 23,148,203 27.5% 42,214,153 39.3%
#07 Governor Oper 1,652,727 1,649,146 0 1,649,146 1,879,549 0 1,879,549 (3,581) -0.2% 230,403 14.0%
#07 Governor Total 1,652,727 1,649,146 0 1,649,146 1,879,549 0 1,879,549 (3,581) -0.2% 230,403 14.0%
#08 Lt. Governor Oper 143,610 143,828 0 143,828 144,051 0 144,051 218 0.2% 223 0.2%
#08 Lt. Governor Total 143,610 143,828 0 143,828 144,051 0 144,051 218 0.2% 223 0.2%
#09 Secretary of State Oper 444,708 841,282 0 841,282 1,446,302 50,000 1,496,302 396,574 89.2% 655,020 77.9%
#09 Secretary of State Total 444,708 841,282 0 841,282 1,446,302 50,000 1,496,302 396,574 89.2% 655,020 77.9%
#10 State Auditor Oper 2,184,391 2,095,011 176,669 2,271,680 2,118,948 176,669 2,295,617 (89,380) -4.1% 200,606 9.6%
#10 State Auditor Total 2,184,391 2,095,011 176,669 2,271,680 2,118,948 176,669 2,295,617 (89,380) -4.1% 200,606 9.6%
#11 Attorney General Oper 5,815,369 5,884,596 400,000 6,284,596 5,638,473 0 5,638,473 69,227 1.2% (246,123) -4.2%
#11 Attorney General Total 5,815,369 5,884,596 400,000 6,284,596 5,638,473 0 5,638,473 69,227 1.2% (246,123) -4.2%
#12 State Treasurer Oper 1,389,129 1,297,426 0 1,297,426 1,301,283 0 1,301,283 (91,703) -6.6% 3,857 0.3%
#12 State Treasurer Total 1,389,129 1,297,426 0 1,297,426 1,301,283 0 1,301,283 (91,703) -6.6% 3,857 0.3%
#13 Education Aid 1,049,348,167 1,113,624,778 (1,217) 1,113,623,561 1,159,880,190 (3,495,308) 1,156,384,882 64,276,611 6.1% 42,760,104 3.8%
#13 Education Oper 16,184,774 17,976,558 177,342 18,153,900 19,083,626 1,559,378 20,643,004 1,791,784 11.1% 2,666,446 14.8%
#13 Education Total 1,065,532,941 1,131,601,336 176,125 1,131,777,461 1,178,963,816 (1,935,930) 1,177,027,886 66,068,395 6.2% 45,426,550 4.0%
#14 Public Service Comm Oper 2,359,563 2,422,539 0 2,422,539 2,429,539 0 2,429,539 62,976 2.7% 7,000 0.3%
#14 Public Service Comm Total 2,359,563 2,422,539 0 2,422,539 2,429,539 0 2,429,539 62,976 2.7% 7,000 0.3%
#15 Parole Board Oper 819,249 834,771 0 834,771 850,640 0 850,640 15,522 1.9% 15,869 1.9%
#15 Parole Board Total 819,249 834,771 0 834,771 850,640 0 850,640 15,522 1.9% 15,869 1.9%
#16 Revenue Aid 72,500,000 71,600,000 (6,500,000) 65,100,000 74,900,000 (1,379,000) 73,521,000 (900,000) -1.2% 1,921,000 2.7%
#16 Revenue Oper 25,642,530 25,398,331 0 25,398,331 25,912,626 515,395 26,428,021 (244,199) -1.0% 1,029,690 4.1%
#16 Revenue Total 98,142,530 96,998,331 (6,500,000) 90,498,331 100,812,626 (863,605) 99,949,021 (1,144,199) -1.2% 2,950,690 3.0%
#17 Aeronautics Oper 0 0 3,600,000 3,600,000 0 0 0 0 na 0 na
#17 Aeronautics Total 0 0 3,600,000 3,600,000 0 0 0 0 na 0 na
Page 75
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (excludes deficits)
Without deficits
Per 2013 Session
2014 Deficits
Revised Per 2014 Session
Per 2013 Session
2014 Changes
Revised Per 2014 Session
FY14 $
Change
FY14 %
Change
FY15 $
Change
FY15 %
Change
#18 Agriculture Oper 5,618,857 5,956,322 (44,746) 5,911,576 5,922,021 0 5,922,021 337,465 6.0% (34,301) -0.6%
#18 Agriculture Total 5,618,857 5,956,322 (44,746) 5,911,576 5,922,021 0 5,922,021 337,465 6.0% (34,301) -0.6%
#21 Fire Marshal Oper 3,991,920 4,086,558 0 4,086,558 4,093,785 0 4,093,785 94,638 2.4% 7,227 0.2%
#21 Fire Marshal Total 3,991,920 4,086,558 0 4,086,558 4,093,785 0 4,093,785 94,638 2.4% 7,227 0.2%
#23 Labor Oper 497,939 503,467 0 503,467 509,118 154,445 663,563 5,528 1.1% 160,096 31.8%
#23 Labor Total 497,939 503,467 0 503,467 509,118 154,445 663,563 5,528 1.1% 160,096 31.8%
#25 HHS System Aid 1,114,177,099 1,190,657,630 (7,648,361) 1,183,009,269 1,255,689,224 23,174,219 1,278,863,443 76,480,531 6.9% 88,205,813 7.4%
#25 HHS System Oper 236,425,259 233,169,499 (2,034,444) 231,135,055 233,902,402 1,152,358 235,054,760 (3,255,760) -1.4% 1,885,261 0.8%
#25 HHS System Total 1,350,602,358 1,423,827,129 (9,682,805) 1,414,144,324 1,489,591,626 24,326,577 1,513,918,203 73,224,771 5.4% 90,091,074 6.3%
#28 Veterans Affairs Oper 1,127,666 1,216,003 0 1,216,003 1,228,082 0 1,228,082 88,337 7.8% 12,079 1.0%
#28 Veterans Affairs Total 1,127,666 1,216,003 0 1,216,003 1,228,082 0 1,228,082 88,337 7.8% 12,079 1.0%
#29 Natural Resources Aid 5,958,361 5,808,361 0 5,808,361 5,808,361 10,492,793 16,301,154 (150,000) -2.5% 10,492,793 180.6%
#29 Natural Resources Oper 10,397,171 10,676,038 0 10,676,038 10,807,768 41,650 10,849,418 278,867 2.7% 173,380 1.6%
#29 Natural Resources Total 16,355,532 16,484,399 0 16,484,399 16,616,129 10,534,443 27,150,572 128,867 0.8% 10,666,173 64.7%
#31 Military Dept Aid 988,775 988,775 0 988,775 988,775 0 988,775 0 0.0% 0 0.0%
#31 Military Dept Oper 3,687,973 4,084,520 0 4,084,520 4,276,279 0 4,276,279 396,547 10.8% 191,759 4.7%
#31 Military Dept Total 4,676,748 5,073,295 0 5,073,295 5,265,054 0 5,265,054 396,547 8.5% 191,759 3.8%
#32 Ed Lands & Funds Oper 310,575 315,838 0 315,838 321,217 0 321,217 5,263 1.7% 5,379 1.7%
#32 Ed Lands & Funds Total 310,575 315,838 0 315,838 321,217 0 321,217 5,263 1.7% 5,379 1.7%
#33 Game & Parks Aid 42,011 42,011 0 42,011 42,011 0 42,011 0 0.0% 0 0.0%
#33 Game & Parks Oper 10,833,605 11,034,425 0 11,034,425 11,148,845 0 11,148,845 200,820 1.9% 114,420 1.0%
#33 Game & Parks Total 10,875,616 11,076,436 0 11,076,436 11,190,856 0 11,190,856 200,820 1.8% 114,420 1.0%
#34 Library Commission Aid 1,043,240 1,201,240 0 1,201,240 1,209,240 0 1,209,240 158,000 15.1% 8,000 0.7%
#34 Library Commission Oper 2,402,760 2,484,662 0 2,484,662 2,569,572 0 2,569,572 81,902 3.4% 84,910 3.4%
#34 Library Commission Total 3,446,000 3,685,902 0 3,685,902 3,778,812 0 3,778,812 239,902 7.0% 92,910 2.5%
#35 Liquor Control Oper 973,825 1,033,269 0 1,033,269 1,046,759 0 1,046,759 59,444 6.1% 13,490 1.3%
#35 Liquor Control Total 973,825 1,033,269 0 1,033,269 1,046,759 0 1,046,759 59,444 6.1% 13,490 1.3%
#36 Racing Commission Oper 0 15,000 0 15,000 0 0 0 15,000 na (15,000) na
#36 Racing Commission Total 0 15,000 0 15,000 0 0 0 15,000 na (15,000) na
#46 Correctional Services Aid 0 0 0 0 0 3,500,000 3,500,000 0 na 3,500,000 na
#46 Correctional Services Oper 156,840,269 167,048,868 4,830,972 171,879,840 170,854,827 10,958,519 181,813,346 10,208,599 6.5% 14,764,478 8.8%
#46 Correctional Services Total 156,840,269 167,048,868 4,830,972 171,879,840 170,854,827 14,458,519 185,313,346 10,208,599 6.5% 18,264,478 10.9%
Page 76
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (excludes deficits)
Without deficits
Per 2013 Session
2014 Deficits
Revised Per 2014 Session
Per 2013 Session
2014 Changes
Revised Per 2014 Session
FY14 $
Change
FY14 %
Change
FY15 $
Change
FY15 %
Change
#47 NETC Oper 9,558,708 9,706,004 0 9,706,004 9,840,715 0 9,840,715 147,296 1.5% 134,711 1.4%
#47 NETC Total 9,558,708 9,706,004 0 9,706,004 9,840,715 0 9,840,715 147,296 1.5% 134,711 1.4%
#48 Coordinating Comm Aid 6,993,156 7,308,156 0 7,308,156 7,353,156 200,000 7,553,156 315,000 4.5% 245,000 3.4%
#48 Coordinating Comm Oper 1,188,481 1,300,105 10,000 1,310,105 1,310,637 11,000 1,321,637 111,624 9.4% 21,532 1.7%
#48 Coordinating Comm Total 8,181,637 8,608,261 10,000 8,618,261 8,663,793 211,000 8,874,793 426,624 5.2% 266,532 3.1%
#50 State Colleges Oper 45,450,893 47,496,183 0 47,496,183 49,396,030 0 49,396,030 2,045,290 4.5% 1,899,847 4.0%
#50 State Colleges Total 45,450,893 47,496,183 0 47,496,183 49,396,030 0 49,396,030 2,045,290 4.5% 1,899,847 4.0%
#51 University of Nebraska Oper 497,998,690 519,613,638 0 519,613,638 540,180,384 2,636,500 542,816,884 21,614,948 4.3% 23,203,246 4.5%
#51 University of Nebraska Total 497,998,690 519,613,638 0 519,613,638 540,180,384 2,636,500 542,816,884 21,614,948 4.3% 23,203,246 4.5%
#54 Historical Society Oper 3,915,325 4,120,916 701,646 4,822,562 4,179,737 752,486 4,932,223 205,591 5.3% 811,307 19.7%
#54 Historical Society Total 3,915,325 4,120,916 701,646 4,822,562 4,179,737 752,486 4,932,223 205,591 5.3% 811,307 19.7%
#64 State Patrol Oper 54,253,448 56,153,379 0 56,153,379 56,576,821 0 56,576,821 1,899,931 3.5% 423,442 0.8%
#64 State Patrol Total 54,253,448 56,153,379 0 56,153,379 56,576,821 0 56,576,821 1,899,931 3.5% 423,442 0.8%
#65 Admin Services (DAS) Oper 7,638,096 7,731,281 1,467,753 9,199,034 7,821,743 0 7,821,743 93,185 1.2% 90,462 1.2%
#65 Admin Services (DAS) Total 7,638,096 7,731,281 1,467,753 9,199,034 7,821,743 0 7,821,743 93,185 1.2% 90,462 1.2%
#67 Equal Opportunity Oper 1,178,277 1,168,106 0 1,168,106 1,186,439 0 1,186,439 (10,171) -0.9% 18,333 1.6%
#67 Equal Opportunity Total 1,178,277 1,168,106 0 1,168,106 1,186,439 0 1,186,439 (10,171) -0.9% 18,333 1.6%
#68 Latino American Comm. Oper 178,681 187,679 0 187,679 190,981 0 190,981 8,998 5.0% 3,302 1.8%
#68 Latino American Comm. Total 178,681 187,679 0 187,679 190,981 0 190,981 8,998 5.0% 3,302 1.8%
#69 Arts Council Aid 838,069 903,069 0 903,069 903,069 0 903,069 65,000 7.8% 0 0.0%
#69 Arts Council Oper 538,267 550,931 0 550,931 564,132 39,956 604,088 12,664 2.4% 53,157 9.6%
#69 Arts Council Total 1,376,336 1,454,000 0 1,454,000 1,467,201 39,956 1,507,157 77,664 5.6% 53,157 3.7%
#70 Foster Care Review Oper 1,379,348 1,652,806 0 1,652,806 1,616,119 0 1,616,119 273,458 19.8% (36,687) -2.2%
#70 Foster Care Review Total 1,379,348 1,652,806 0 1,652,806 1,616,119 0 1,616,119 273,458 19.8% (36,687) -2.2%
#72 Economic Development Aid 7,356,396 6,860,000 0 6,860,000 6,860,000 0 6,860,000 (496,396) -6.7% 0 0.0%
#72 Economic Development Oper 4,101,559 4,848,356 0 4,848,356 4,899,875 0 4,899,875 746,797 18.2% 51,519 1.1%
#72 Economic Development Total 11,457,955 11,708,356 0 11,708,356 11,759,875 0 11,759,875 250,401 2.2% 51,519 0.4%
#74 Power Review Board Oper 0 0 0 0 0 200,000 200,000 0 na 200,000 na
#74 Power Review Board Total 0 0 0 0 0 200,000 200,000 0 na 200,000 na
#76 Indian Commission Oper 167,410 205,261 0 205,261 208,175 0 208,175 37,851 22.6% 2,914 1.4%
#76 Indian Commission Total 167,410 205,261 0 205,261 208,175 0 208,175 37,851 22.6% 2,914 1.4%
Page 77
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (excludes deficits)
Without deficits
Per 2013 Session
2014 Deficits
Revised Per 2014 Session
Per 2013 Session
2014 Changes
Revised Per 2014 Session
FY14 $
Change
FY14 %
Change
FY15 $
Change
FY15 %
Change
#77 Industrial Relations Oper 302,708 309,579 0 309,579 313,047 0 313,047 6,871 2.3% 3,468 1.1%
#77 Industrial Relations Total 302,708 309,579 0 309,579 313,047 0 313,047 6,871 2.3% 3,468 1.1%
#78 Crime Commission Aid 2,301,403 4,023,828 0 4,023,828 6,023,828 (50,000) 5,973,828 1,722,425 74.8% 1,950,000 48.5%
#78 Crime Commission Oper 3,331,208 3,623,960 0 3,623,960 3,656,000 50,000 3,706,000 292,752 8.8% 82,040 2.3%
#78 Crime Commission Total 5,632,611 7,647,788 0 7,647,788 9,679,828 0 9,679,828 2,015,177 35.8% 2,032,040 26.6%
#81 Blind & Visually Impaired Aid 176,890 176,890 0 176,890 176,890 0 176,890 0 0.0% 0 0.0%
#81 Blind & Visually Impaired Oper 846,113 857,480 0 857,480 869,100 0 869,100 11,367 1.3% 11,620 1.4%
#81 Blind & Visually Impaired Total 1,023,003 1,034,370 0 1,034,370 1,045,990 0 1,045,990 11,367 1.1% 11,620 1.1%
#82 Deaf & Hard of Hearing Oper 848,782 861,653 0 861,653 874,808 0 874,808 12,871 1.5% 13,155 1.5%
#82 Deaf & Hard of Hearing Total 848,782 861,653 0 861,653 874,808 0 874,808 12,871 1.5% 13,155 1.5%
#83 Community Colleges Aid 87,870,147 91,384,953 0 91,384,953 95,040,351 0 95,040,351 3,514,806 4.0% 3,655,398 4.0%
#83 Community Colleges Total 87,870,147 91,384,953 0 91,384,953 95,040,351 0 95,040,351 3,514,806 4.0% 3,655,398 4.0%
#84 Environmental Quality Aid 2,446,846 2,077,196 0 2,077,196 2,141,196 0 2,141,196 (369,650) -15.1% 64,000 3.1%
#84 Environmental Quality Oper 3,323,012 3,362,055 0 3,362,055 3,393,198 0 3,393,198 39,043 1.2% 31,143 0.9%
#84 Environmental Quality Total 5,769,858 5,439,251 0 5,439,251 5,534,394 0 5,534,394 (330,607) -5.7% 95,143 1.7%
#85 Retirement Board Oper 29,991,325 24,290,810 0 24,290,810 46,418,580 226,671 46,645,251 (5,700,515) -19.0% 22,354,441 92.0%
#85 Retirement Board Total 29,991,325 24,290,810 0 24,290,810 46,418,580 226,671 46,645,251 (5,700,515) -19.0% 22,354,441 92.0%
#87 Account/Disclosure Oper 407,548 414,692 0 414,692 468,402 0 468,402 7,144 1.8% 53,710 13.0%
#87 Account/Disclosure Total 407,548 414,692 0 414,692 468,402 0 468,402 7,144 1.8% 53,710 13.0%
#91 Tourism Commission Aid 0 250,000 0 250,000 250,000 0 250,000 250,000 na 0 0.0%
#91 Tourism Commission Oper 250,000 250,000 0 250,000 250,000 0 250,000 0 0.0% 0 0.0%
#91 Tourism Commission Total 250,000 500,000 0 500,000 500,000 0 500,000 250,000 100.0% 0 0.0%
Construction Total Total 20,772,233 25,830,024 490,000 26,320,024 28,310,000 (1,872,556) 26,437,444 5,057,791 24.3% 607,420 2.4%
OPERATIONS 1,259,610,962 1,315,231,996 16,730,192 1,331,962,188 1,395,116,374 34,362,717 1,429,479,091 55,621,034 4.4% 114,247,095 8.7%
STATE AID 2,352,040,560 2,497,106,887 (14,149,578) 2,482,957,309 2,617,466,291 32,442,704 2,649,908,995 145,066,327 6.2% 152,802,108 6.1%
CONSTRUCTION 20,772,233 25,830,024 490,000 26,320,024 28,310,000 (1,872,556) 26,437,444 5,057,791 24.3% 607,420 2.4%
TOTAL GENERAL FUNDS 3,632,423,755 3,838,168,907 3,070,614 3,841,239,521 4,040,892,665 64,932,865 4,105,825,530 205,745,152 5.7% 267,656,623 7.0%
Page 78
Appendix C
General Fund Appropriations by State Aid Program
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (exclude deficits)
w/o
Deficits
Per 2013
Session
2014
Deficits
Revised
2014 Session
Per 2013
Sess
2014
Change
Revised
2014 Session
FY14
$ Change
FY14
% Change
FY15
$ Change
FY15
% Change
Supreme Court
Court Appointed Special Advocate 0 200,000 0 200,000 200,000 0 200,000 200,000 na 0 0.0%
Education
TEEOSA State Aid to Education 836,867,085 884,888,317 0 884,888,317 920,786,352 (7,214,510) 913,571,842 48,021,232 5.7% 28,683,525 3.2%
Special Education 193,893,842 203,588,534 0 203,588,534 213,767,961 0 213,767,961 9,694,692 5.0% 10,179,427 5.0%
Aid to ESU's 14,051,761 14,051,761 0 14,051,761 14,051,761 0 14,051,761 0 0.0% 0 0.0%
Early Childhood grant program 0 1,915,962 (95,798) 1,820,164 1,915,962 3,319,202 5,235,164 1,820,164 na 3,415,000 187.6%
Early Childhood Endowment 0 4,000,000 0 4,000,000 4,000,000 0 4,000,000 4,000,000 na 0 0.0%
Nurturing Healthy Behaviors 0 0 0 0 0 400,000 400,000 0 na 400,000 na
School Lunch 392,032 392,032 0 392,032 392,032 0 392,032 0 0.0% 0 0.0%
Textbook loan program 465,500 465,500 0 465,500 465,500 0 465,500 0 0.0% 0 0.0%
School Breakfast reimbursement 453,008 453,008 94,581 547,589 453,008 0 453,008 94,581 20.9% (94,581) -17.3%
Adult Education 214,664 214,664 0 214,664 214,664 0 214,664 0 0.0% 0 0.0%
Learning Communities Aid 882,275 725,000 0 725,000 725,000 0 725,000 (157,275) -17.8% 0 0.0%
Summer Food Service grants 128,000 130,000 0 130,000 130,000 0 130,000 2,000 1.6% 0 0.0%
High School Equivalency Assistance 0 750,000 0 750,000 750,000 0 750,000 750,000 na 0 0.0%
Step Up Quality Child Care-Scholarships 0 0 0 0 100,000 0 100,000 0 na 100,000 na
Step Up Quality Child Care-Bonuses 0 0 0 0 26,700 0 26,700 0 na 26,700 na
Vocational Rehabilitation 2,000,000 2,050,000 0 2,050,000 2,101,250 0 2,101,250 50,000 2.5% 51,250 2.5%
Revenue
Homestead Exemption 72,500,000 71,600,000 (6,500,000) 65,100,000 74,900,000 (1,379,000) 73,521,000 (7,400,000) -10.2% 8,421,000 12.9%
Health & Human Services
Behavioral Health Aid 75,133,219 70,759,664 0 70,759,664 57,344,214 10,100,000 67,444,214 (4,373,555) -5.8% (3,315,450) -4.7%
ACA Contingency 0 0 0 0 10,000,000 (10,000,000) 0 0 na 0 na
Medical student assistance/RHOP 637,086 637,086 0 637,086 637,086 150,000 787,086 0 0.0% 150,000 23.5%
Children’s’ Health Insurance 13,107,750 17,638,937 1,809,439 19,448,376 22,425,227 5,134,800 27,560,027 6,340,626 48.4% 8,111,651 41.7%
Public Assistance 108,524,785 107,116,945 (2,900,000) 104,216,945 108,181,405 2,138,483 110,319,888 (4,307,840) -4.0% 6,102,943 5.9%
Medicaid 644,573,194 710,247,560 (6,557,800) 703,689,760 773,561,292 4,162,605 777,723,897 59,116,566 9.2% 74,034,137 10.5%
Child Welfare Aid 153,774,584 156,756,327 0 156,756,327 138,879,572 (1,100,573) 137,778,999 2,981,743 1.9% (18,977,328) -12.1%
Developmental disabilities aid 101,878,371 109,173,012 0 109,173,012 126,248,291 10,791,904 137,040,195 7,294,641 7.2% 27,867,183 25.5%
Community health centers 3,758,060 4,058,060 0 4,058,060 4,058,060 250,000 4,308,060 300,000 8.0% 250,000 6.2%
Page 79
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (exclude deficits)
w/o
Deficits
Per 2013
Session
2014
Deficits
Revised
2014 Session
Per 2013
Sess
2014
Change
Revised
2014 Session
FY14
$ Change
FY14
% Change
FY15
$ Change
FY15
% Change
Health Aid 4,790,612 6,040,612 0 6,040,612 5,890,612 547,000 6,437,612 1,250,000 26.1% 397,000 6.6%
Care Management 2,033,123 2,128,869 0 2,128,869 2,225,644 0 2,225,644 95,746 4.7% 96,775 4.5%
Area agencies on aging 5,966,315 6,100,558 0 6,100,558 6,237,821 1,000,000 7,237,821 134,243 2.3% 1,137,263 18.6%
Natural Resources
Nebr Water Conservation Fund 2,318,036 2,318,036 0 2,318,036 2,318,036 0 2,318,036 0 0.0% 0 0.0%
Resources Development Fund 3,140,325 3,140,325 0 3,140,325 3,140,325 10,492,793 13,633,118 0 0.0% 10,492,793 334.1%
NRD Water Management grants 500,000 350,000 0 350,000 350,000 0 350,000 (150,000) -30.0% 0 0.0%
Military Department
Governors Emergency Program 500,000 500,000 0 500,000 500,000 0 500,000 0 0.0% 0 0.0%
Guard tuition assistance 488,775 488,775 0 488,775 488,775 0 488,775 0 0.0% 0 0.0%
Game and Parks
Niobrara Council 42,011 42,011 0 42,011 42,011 0 42,011 0 0.0% 0 0.0%
Library Commission
Local libraries 1,043,240 1,201,240 0 1,201,240 1,209,240 0 1,209,240 158,000 15.1% 8,000 0.7%
Correctional Services
Vocational and Life Skills Program 0 0 0 0 0 3,500,000 3,500,000 0 na 3,500,000 na
Postsecondary Ed Coord
Nebr Opportunity Grant Program 6,418,156 6,668,156 0 6,668,156 6,668,156 200,000 6,868,156 250,000 3.9% 200,000 3.0%
Access College Early Scholarship 575,000 640,000 0 640,000 685,000 0 685,000 65,000 11.3% 45,000 7.0%
Arts Council
Aid to arts programs 838,069 903,069 0 903,069 903,069 0 903,069 65,000 7.8% 0 0.0%
Economic Development
Business Innovation Act 7,156,396 6,760,000 0 6,760,000 6,760,000 0 6,760,000 (396,396) -5.5% 0 0.0%
Small Business Innovation Act 200,000 0 0 0 0 0 0 (200,000) -100.0% 0 na
Grow Nebraska 0 100,000 0 100,000 100,000 0 100,000 100,000 na 0 0.0%
Crime Commission
Juvenile services grants 587,812 587,812 0 587,812 587,812 0 587,812 0 0.0% 0 0.0%
Community Based Juvenile Services aid 1,477,575 3,000,000 0 3,000,000 5,000,000 (50,000) 4,950,000 1,522,425 103.0% 1,950,000 65.0%
Crimestoppers program 13,457 13,457 0 13,457 13,457 0 13,457 0 0.0% 0 0.0%
Victim Witness assistance 52,559 52,559 0 52,559 52,559 0 52,559 0 0.0% 0 0.0%
Crime Victims reparations 20,000 20,000 0 20,000 20,000 0 20,000 0 0.0% 0 0.0%
Violence Prevention Grants 150,000 350,000 0 350,000 350,000 0 350,000 200,000 133.3% 0 0.0%
Page 80
FY2012-13 FY2013-14 FY2014-15 Change over Prior Year (exclude deficits)
w/o
Deficits
Per 2013
Session
2014
Deficits
Revised
2014 Session
Per 2013
Sess
2014
Change
Revised
2014 Session
FY14
$ Change
FY14
% Change
FY15
$ Change
FY15
% Change
Blind and Visually Impaired
Blind rehabilitation 176,890 176,890 0 176,890 176,890 0 176,890 0 0.0% 0 0.0%
Community Colleges
Aid to Community Colleges 87,870,147 91,384,953 0 91,384,953 95,040,351 0 95,040,351 3,514,806 4.0% 3,655,398 4.0%
Environmental Quality
Superfund cleanup 621,850 252,200 0 252,200 316,200 0 316,200 (369,650) -59.4% 64,000 25.4%
Storm Water Management grants 1,824,996 1,824,996 0 1,824,996 1,824,996 0 1,824,996 0 0.0% 0 0.0%
Tourism Commission
Tourism grant program 0 250,000 0 250,000 250,000 0 250,000 250,000 na 0 0.0%
Individuals/Other 1,135,669,688 1,212,891,823 (7,648,361) 1,205,243,462 1,278,027,667 26,874,219 1,304,901,886 69,573,774 6.1% 99,658,424 8.3%
Local Government 1,216,370,872 1,284,215,064 (6,501,217) 1,277,713,847 1,339,438,624 5,568,485 1,345,007,109 61,342,975 5.0% 67,293,262 5.3%
Total General Fund State Aid 2,352,040,560 2,497,106,887 (14,149,578) 2,482,957,309 2,617,466,291 32,442,704 2,649,908,995 130,916,749 5.6% 166,951,686 6.7%
Page 81
Appendix D
Historical Variance, Projected vs Actual
General Fund Receipts Projected Actual $ % Variance
Millions of $ Sine Die * Receipts Variance Negative Positive
FY 1986-87 878.0 886.4 8.4 1.0%
FY 1987-88 924.3 1,016.3 92.0 10.0%
FY 1988-89 988.4 1,133.5 145.1 14.7%
FY 1989-90 1,110.9 1,152.7 41.8 3.8%
FY 1990-91 1,334.6 1,367.1 32.5 2.4%
FY 1991-92 1,493.2 1,490.4 (2.8) -0.2%
FY 1992-93 1,537.3 1,524.7 (12.6) -0.8%
FY 1993-94 1,662.5 1,653.7 (8.8) -0.5%
FY 1994-95 1,729.9 1,706.0 (23.9) -1.4%
FY 1995-96 1,834.3 1,836.7 2.4 0.1%
FY 1996-97 1,918.0 2,009.6 91.6 4.8%
FY 1997-98 1,993.8 2,105.4 111.6 5.6%
FY 1998-99 2,102.9 2,123.9 21.0 1.0%
FY 1999-00 2,326.3 2,403.9 77.6 3.3%
FY 2000-01 2,484.3 2,456.8 (27.5) -1.1%
FY 2001-02 2,646.0 2,365.5 (280.5) -10.6%
FY 2002-03 2,725.7 2,456.4 (269.3) -9.9%
FY 2003-04 2,732.0 2,718.7 (13.3) -0.5%
FY 2004-05 2,775.5 3,037.2 261.7 9.4%
FY 2005-06 3,092.3 3,352.2 259.9 8.4%
FY 2006-07 3,217.0 3,408.3 191.4 5.9%
FY 2007-08 3,389.2 3,506.1 116.9 3.5%
FY2008-09 3,531.7 3,357.5 (174.3) -4.9%
FY2009-10 3,446.7 3,204.7 (242.0) -7.0%
FY2010-11 3,422.2 3,499.7 77.4 2.3%
FY2011-12 3,591.1 3,695.9 104.8 2.9%
FY2012-13 3,767.1 4,052.4 285.3 7.6%
FY2013-14 est ** 4,020.7 4,100.5 79.8 2.0%
FY2014-15 est 4,175.0 ? ? ? ?
FY2015-16 est 4,367.0 ? ? ? ?
FY2016-17 est 4,628.0 ? ? ? ?
FY2017-18 est na ? ? ? ?
Avg Variance -4.4% 4.7%
* Projected at Sine Die means the estimated net receipts at the time that fiscal years’
budget was set adjusted any subsequent tax rate or other changes which are reflected
in the actual receipt figures. Initially the dollar amount shown would be the “certified
forecast” for Cash Reserve Fund transfer purposes except in cases where the forecast
is subsequently reduced and the forecast is “re-certified” at the lower number.
** Assumes FY14 actual receipts will equal forecast